"Based upon the available cash currently on hand, including the net proceeds from the 2012 ATM described above, if we meet our current revenue and expenditure forecast for the year ending December 31, 2012 (both of which are uncertain), we estimate that we will need at least $2,000,000 in additional cash in order to continue as a going concern for the next twelve months ending December 31, 2012."
The way I read this, Wave has received net proceeds of $2.3m and plans to sell another $2m of stock to meet its minimal cash needs for the year. Add another $4m or so to put cash in a more robust place and I suppose there will be around $6m of further sales of stock.
This also means that the minimal doughnut hole is around $4.3m, but the total cash requirement will be around $8.3m.
Wave expects it needs $51.2m to fund operations.
So I think it is expecting to generate considerably less than my initial $58-62m target for 2012. Something more like $46-48m.
Given the acquisition of Safend and the increase in staff, frankly I'd say that was an unambitious forecast. No wonder the CEO avoided offering guidance.
I guess meeting internal metrics would be useful when calculating performance bonuses as well as providing a prudent basis for cash management.
On the other hand, following Feeney has usually been a more reliable method than most others.
I'm revising my revenue target downwards more-or-less to match my Feeney guesstimate. Why should I stick my neck out if they won't. $46-50m.
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