dorsaVi (ASX: DVL), established in 2008 and based in Kew, Australia, is focussed on developing innovative motion analysis device technologies for use in clinical applications, elite sports, and occupational health and safety across Australia, Europe, and the United States.
On April 8th, 2019, dorsaVi announced that it has signed a three-year deal with ASM Technologies Limited, on behalf of a major UK transport infrastructure organisation, for 64 myViSafe kits. The organisation will use myViSafe to support its efforts in self-managing manual handling risks in the field and facilitating changes in manual handling behaviours among their workforce.
dorsaVi has received a purchase order from ASM Technologies, that has been invoiced for the full amount of GBP 293,760 (~ AUD 550,000), to be paid upfront. The company informed that it is one of the largest roll-outs of myViSafe to a single organisation to date and the revenue will be recognised in 36 equal monthly instalments of GBP 8,160 with the first instalment to be recognised on delivery of the myViSafe kits in early Q4 2019.
On March 15th, 2019, dorsaVi released the results of an internal review following the release of its half-year financial results on February 28th, 2019. The review has prescribed a range of operational changes to lower the operating costs, build revenue and sales capability, and optimise cash reserves.
With a reduction in operational and labour expenses to take effect immediately, cash outflows from operating activities (excluding government grants and tax incentives) once normalised, are expected to be reduced by 30-40% compared to the first half of FY2019.
The initiatives also include a voluntary reduction in senior management salaries as the company’s CEO Andrew Ronchi, agreed to reduce his salary and benefits from USD 310,000 to USD 221,500 to expand the US market through strategic deals and increased recurring revenue. The review also suggests a reduction in corporate and marketing overheads and optimising the spend on new development within their technical team by tuning the product platform for large multi-national company applications, rather than pursue new applications.
Moreover, in support of these initiatives, the Company’s non-executive directors have resolved, subject to shareholder approval, to accept options, in lieu of directors’ fees applicable from March 1st, 2019. On the last day of each quarter, the number of options, with a five-year exercise period, will be determined, and the exercise price will be at a 50% premium to the 10-day VWAP up to the last trading day of each quarter. The first calculation date is July 1st, 2019.
As per the financial results for the half-year ended December 31st, 2018 (H1 FY2019), dorsaVi recorded a 68% growth in the recurring revenue from $ 393k in the prior corresponding period (PCP) to $ 659k. The after-tax loss was posted at $ 1.91 million, down on $ 1.97 million in PCP. The company focused on continued product development via investment of $ 527k, and the cash balance stood at $ 4.87 million as of December 31st, 2018.
The company has a current market cap of $ 8.77 million with ~ 204.02 million outstanding shares. On April 8th, 2019, the DVL stock price ended the market trading at $ 0.043, up 7.5% by $ 0.003.
Today, April 9th, the stock has zoomed up by ~14%, trading at $0.049 (As at 12:20 PM AEST).