Yes, I agree, the $11.5M could come from internally generated cash or externally generated cash.
For at least the last several years, the burn rate has been about $1.5M/quarter. Operating expenses on the income statement have increased for each of the last two quarters sequentially and ~30% Y/Y on a year on year basis. Assuming no incremental costs (unlikely), Wave would need $18.9M to breakeven using the trailing four quarters expense rate as a proxy. Using last quarter as a base, revenues would have to increase 550% to get to $18.9M on an annualized basis. I ran a screen of ~13000 publicly traded companies looking for the following attributes:
-Market Cap >$100M
-Previous year revenue <$3M, >$0
-Subsequent year revenue >$19M (e.g. 550% growth)
In 2006 this happened once out of 13,000 stocks.
In 2005 this happened twice out of 13,000 stocks.
In 2004 no results.
Taking off the revenue size restriction and screening on growth rates only 2, 4 and 3 companies achieved growth rates of >500% respectively in those years coming from a non-zero base.
These are historical facts.
The future is unknown.
But the historical facts should not be overlooked by anyone considering or currently invested in Wave.
