Almost $5M Was Spent On Lawyers And Admin Last Quarter By Getswift

As chairman Michael Fricklas described it in last week’s annual report, Get Swift, has faced some major challenges in the past year, which provides supply chain management systems. Mr. Fricklas also said in a report ‘resulting in shareholder losses, the stock price soared and then fell, inquiries from regulators and challenges from class action lawyers.

The troubled technology sector stock Getswift issued its quarter cash statement of September, showing a steep increase in cash burn and a slight increase in quarter-on-quarter customer receipts to $272,000. Including $4.8 million in admin and corporate costs, Getswift burned $7.3 million last quarter which is up from $4 million in operating costs including $2.3 million in admin last quarter.

GetSwift is budgeting to spend another $7.5 million of the $28.7 million at the end of September left in this quarter and the cash-burn is set to continue. Large chunk of the increased costs was accounted for by legal costs. GetSwift told investors ‘Due to legal defense costs and increased governance expenses, administration and corporate costs continue to be significant expenditures, together approximately 35 percent for the quarter of the company’s gross expenses.’Â

Before the Federal Court of Australia, these expenses include costs for defending proceedings. The company will continue to vigorously defend these proceedings and has been defending, and if the company prevails will aggressively pursue other damages it may be entitled to in addition to the return of any costs.

From the results of the same quarter last year, an increase of approximately 103.2% in transactions for the quarter ending 30 September 2018 were 1,963,015. And a sequential increase of 37.5% from the preceding quarter. An increase of 154.7% on the same quarter last year, total revenue and other income for the quarter ending 30 September 2018 was $649,760 and an increase of 60.9% from the preceding quarter.

For the quarter ending 30 September 2018, net loss after tax was $4.8 million. The Company continues to invest heavily in technology and large enterprise integrations, including new product development. With the quarter ending 30 September 2018 holding substantial liquidity with cash, cash equivalents, and bank term deposits of $91.4 million, the Company has a strong balance sheet

GetSwift Limited (ASX: GSW) raised $75 million at $4 per share, less than a year ago in December 2017. The stock gained almost 3 percent to $0.53. The last six months performance change was of 25.61%.


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