You may like to consider that cash receipts for the quarter do not represent sales for the quarter. Assuming that payment terms for all sales (excluding their on line sales) are a minimum of 60 days, stating that the 4c’s show no growth trajectory is flawed.
The next quarterly will be a key indicator of traction in the market. That said I still hold the opinion that what overwhelms the founders of Nuheara is likely to underwhelm the investor community. It is a big wide world out there and nobody can criticise Nuheara with regard to the footprint they have achieved in such a short period of time. That said, their enthusiasm stems from taking a conceptual idea through to sales of the product. IMO they are proud of what they have achieved and so they should be. A unique product which will improves the lives of thousands of people.
You cite an assumption of 50 % growth and extrapolate vs cash outflows to indicate a lengthy journey to generating free cash flow. Market demand off this footprint could just as easily deliver 400 or 500 % growth when yr base number is only 4500 units a quarter.
I suspect they will exclude the inflows for pre orders of Boost in this quarterly. If so, we will get a good feel for the traction they have achieved on the IQBuds.
Rokewa
NUH
Price at posting:
9.0¢ Sentiment: Hold Disclosure: Held
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