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Re: Cash flow

By: Cactus Flower in ALEA | Recommend this post (0)
Fri, 01 Jun 12 5:45 PM | 85 view(s)
Boardmark this board | The Trust Matrix 		Msg. 08222 of 54959
(This msg. is a reply to 08219 by DigSpace)
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Hi dig,

You are doing things the way I am.

But I think you have to examine May in particular. There seemed to be little use of the ATM. I don't think they would have made payroll if revenues were not around $4m for the month.

That being the case, I think the company is fairly close to operational cash flow break even.

The stabilisation around $1 also makes me thing Wave has a means to fund itself via an equity sale. So the prospect of massive dilution (at 40 cents, say) has retreated.

I think they will survive and reach the mid-year deal with old shares mostly intact. A huge relief.




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The above is a reply to the following message:
Cash flow
By: DigSpace in ALEA
Fri, 01 Jun 12 5:29 PM 		Msg. 08219 of 54959

So cash flow from operations was around -3.6m Q1, and Q1 benefited from a ca. 3.0m swing in AR-AP, pushing the books if you will. So, had AR-AP stayed flat Q1 would have burned $6m? One can't expect Q2 to generate yet another 3m transient flow benefit from AR-AP (it is possible, they have pushed it pretty far before), but either way as the started Q2 with about $2m, it would seem another 4m is what is missing. The ATM may provide that 4m in which case perhaps the underlying billings hasn't really improved much? There is still June after all. i.e. 2m if the missing 4m is for June requiring only 2m from the ATM *so far* without improvement in billings.

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