mCloud Technologies Corp (MCLD)

[DVP25]

That's quite a 180. Just a couple months ago you posted
"I love the tech but I have questions about mgmt ..." Now the tech is "garbage".

I also don't think it's fair to say "No contracts during a pandemic" in regard to their building segment. They have released some news re contracts in NY, CA and BC in recent months.

I also believe there's a real opportunity with their "Smart Processes" segment in being part of improving ESG scores, which is becoming more and more of a focus across industries.

All that being said, I share your frustration with Mgmt. Their guidance has been atrocious. They've misled us in regard to their financing (remember "pull-forward" revenue?) and there's been a lot more talk about "targets","partnerships", "accelerated activity" and "debentures" than actual revenue generating DEALS. I've had enough of all of it and have expressed my frustrations to IR.

The latest narrative that they've spun on us is the 70K asset target by "mid-year" which they claim will lead to positive operating cash flow (at $14.5M rev per Qtr). I've crunched the numbers on this and I do believe it's possible to reach $14.5M in total Qtrly revs in the first full Qtr after hitting the 70K asset mark, which would probably be Q3. In order to get there you'd have to assume an avg of around $70 MRR per incremental asset (this is the MRR fig used in the long-term projection slide in the corporate presentation), roughly $465 in Initialization rev per incremental asset (the avg for Q3 2020) and about $2M in Proj Services rev.

So I think it's possible, but whether or not they can execute is the question.