As chairman Michael Fricklas described it in last weekâs 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 âresulting 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 âDue 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 companyâs gross expenses.âÂ
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%.
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people.Â Kalkinemedia.comÂ and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.