Management has set a target of reaching financial independence with its current cash reserves, meaning that the company will no longer need to conduct capital raises to fund cash burn. For the purpose of measuring success against that goal, we have selected the term Cash Burn From Operations (CBFO).
CBFO is a non-GAAP term calculated by using our total net change in cash (as reported in our financial statements), less net proceeds from any sale of shares through equity raises or use of the ATM. Continued revenue growth, alongside further implementation of cost reduction initiatives, drives down the company CBFO, ultimately towards reaching zero - which means the company has reached breakeven.
Following our news of
As recently announced, the Products division has received several new orders from new customers, and continues to make strides towards its breakeven target.
Given the current visibility to the pipeline in both the pathology and products division, the reduced threshold of products breakeven result, as well as the continued impact of the cost reduction initiatives, management anticipates that it has sufficient cash to reach breakeven, avoiding any significantly dilutive capital raise transactions.
“We are rapidly moving towards our goal of financial independence. Our business needs to stand on its own feet, unsupported by external cash raises, and generate a profit. It’s as simple as that.” said
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Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, among others, including other financial projections and potential market opportunity, plans and prospects. Except for historical information, statements about future volumes, sales, growth, costs, cost savings, margins, earnings, earnings per share, diluted earnings per share, cash flows, plans, objectives, expectations, growth or profitability are forward-looking statements based on management’s estimates, beliefs, assumptions and projections. Words such as “could,” “may,” “expects,” “anticipates,” “will,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “predicts,” and variations on such words, and similar expressions that reflect our current views with respect to future events and operational, economic and financial performance, are intended to identify such forward-looking statements. These forward-looking statements are only predictions, subject to risks and uncertainties, and actual results could differ materially from those discussed. We caution investors not to place undue reliance on the forward-looking statements contained in this press release. You are encouraged to read our filings with the
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