I'll try to clear some things up for everyone. Regardling the June quarter financials, they are likely going to be released near the end of September, similar to last year. Furthermore, they stated in their March quarter earnings call that they will be moving to a quarterly release of TTV. As for the cash burn, you can estimate this fairly easily based on logical and reasonable assumptions. With the June headcount reduction and efficiency initiatives announcement, we should see a drop in opex (i.e., primarily headcount reduction) and improvement in gross profit (i.e., efficiency initiatives). Although, these likely won't have an impact for the June quarter. However, on a go forward basis, if we average out the $10M run rate savings stated by management across 4 quarters, we should see $2.5M reduction in cash burn per quarter going forward.
With that said, let's look back to Banxa's previously reported TTV for April, May and June, which are $79M, $88M and $60M, respectively, which can be used to estimate the revenue for the June 2022 quarter. The total TTV should be $227M and taking a 4.5% gross take rate, based on historical results, revenue for the June quarter should be close to $10.2M. Assuming the same gross profit margin as previous quarters of 40%, then gross profit should sit at about $4.1M.
Opex in March 2022 quarter was about $9.2M. Assuming the same Opex for the June quarter, we can expect operating cash burn of about $5.1M.
Cash and cash equivalents for March 2022 quarter sat at about $15.8M. The cash reserves for June 2022 quarter should be around $10.7M. The June 2022 quarter will be bad and there is no indication it won't be. There are some items that I have not accounted for, such as one-time severance payments, non-cash expenses and working capital adjustment. Thus the cash position could be plus/minus a million. Obviously these are rough numbers (all in AUD), however, the key point is that Banxa is not utlizing its credit facility nor is in an imminent cash infusion position.
Let's try to steer clear of FUD!