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FZO, FAMILY ZONE
blacksheep
post Posted: Aug 1 2019, 02:17 PM
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Posts: 6,097
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In Reply To: blacksheep's post @ Jul 9 2019, 09:43 PM

Cash Flow statement seems to indicate unless their receipts from customers increases substantially this quarter they'll need another top up

Cash in kitty as at 30/6/19 = $5.1mil during the Qtr ($5.2mil came from proceeds from issues of shares)
Estimated outflows this quarter = $3.9mil

Receipts from customers June Q = $1.0mil - for the 12 months ended 30 June - $3.9mil

The company explains as follows

QUOTE
Strongly improving cashflows
The Company’s inflows continue to
grow strongly within seasonal cycles.
In the second half of FY2019 the
Company collected in excess of
$4.2M from customers, grants and
other sources
.


QUOTE
Whilst expenditure and revenues are
expected to be affected by timing
issues and sales cycles in the coming
quarters, clearly significant advances
are being made to move the
Company towards cash flow
breakeven.


Meanwhile SP down 9.52% @ 19c
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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
nipper
post Posted: Jul 13 2019, 09:41 AM
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In Reply To: blacksheep's post @ Jul 9 2019, 09:43 PM

FZO gets a mention here, as well as MGM Wireless MWR

https://www.sharecafe.com.au/2019/07/12/the...ity-in-schools/



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

Said 'Thanks' for this post: blacksheep  
 
blacksheep
post Posted: Jul 9 2019, 09:43 PM
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In Reply To: blacksheep's post @ Feb 28 2019, 02:15 PM

SP up 19.44% on the back of their ann - https://www.asx.com.au/asxpdf/20190709/pdf/...h1jbn3n1gvg.pdf

Lots of growth detail, but no mention of $$$ in the door during the Qtr - will have to wait til the end of the month when the June Qtrly is due - so why are they bring out this ann now? Hope there's not another CR in the making - there's a few pumping this on twitter.

According to the March Qrtly they had $2mil in kitty with estimated outflows in the June Qtr $3.6m, A CR raising $5.5m was undertaken in Aprilt. With all this growth and paying customers one hopes they won't require another CR for a while. They also had a loan facility with Radium Capital - https://radiumcapital.com.au/our-story/

QUOTE
Key Facility Terms:
 Counterparty: Innovation Structured Finance Co LLC facilitated by Radium Capital
 Amount: 80% of the expected R&D tax offset resulting from each period’s eligible R&D
expenditures, with principal and interest repaid from the actual tax offsets at the end of the
financial year.
 Maturity Date: 30/9/2019

 Interest Rate: 15% per annum
 Security: Secured against the R&D refund receivable from the ATO
 Conditions: R&D expenditure has to be reviewed by R&D Tax Consultants
 Purpose of Loan as per agreement: Wholly or predominantly for research and development
expenditures.


QUOTE
ACCELERATION WITH TELCOS AND SCHOOLS
Family Zone Cyber Safety Ltd (ASX: FZO, ‘Family Zone’ or ‘the Company’) is pleased to update the
market on business development achievements in the June Quarter 2019.
Highlights
● 173% QoQ growth in value of contracts sold to schools
● 175% growth in USA school footprint in 3 months
● Family Zone now supports 839 contracted schools and 482,000 licensed students
● Paying subscribers has passed through 130,000 with 71,000 through the wholesale channel

https://www.shortman.com.au/stock?q=fzo

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--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Feb 28 2019, 02:15 PM
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Posts: 6,097
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In Reply To: blacksheep's post @ Feb 8 2019, 01:32 PM

SP down 11.11% currently - perhaps due to a few concerns in their HY Financial report? One in particular...

QUOTE
Material Uncertainty Related to Going Concern
We draw attention to Note 1 in the financial report, which indicates that the Family Zone Cyber
Safety Limited incurred a net loss of $7,558,963 during the half-year ended 31 December 2018
and, as of that date, a net cash outflow from operating and investing activities of $6,267,630.
These conditions, along with other matters as set forth in Note 1e, indicate that a material
uncertainty exists that may cast significant doubt on the Group’s ability to continue as a going
concern. Our conclusion is not modified in respect of this matter.


QUOTE
RESULTS
The net loss attributable to members of the Group for the half year ended 31 December 2018 amounted to
$7,558,963 (31 December 2017: net loss attributable to members $6,630,332).

The net loss attributable to members for the current period included share based payment expenses of
$2,093,983 and depreciation and amortisation charges of $2,225,084. The net loss from operations for the
period ended 31 December 2018 excluding these non-cash items was $3,239,896.

The Group’s cash at bank was $3,653,992 as at 31 December 2018.


FWIW - AFR StreetTalk recently mentioned that accountant, and Syd/Hobart 2017 skipper/ winner on Perpetual, Anthony Bell has popped up on the share register of FZO with a 2.7% stake in FZO - https://www.afr.com/street-talk/bell-snaps-...20190225-h1bo8h
https://www.shortman.com.au/stock?q=fzo

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--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Feb 21 2019, 10:35 AM
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Posts: 6,097
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In Reply To: blacksheep's post @ Feb 8 2019, 01:32 PM

BW Equities has issued yet another target - 43c. Below are all of their targets since 2016. With all the sign ups/agreements/acquisitions and enormous potential contained in their research you would think they would largely maintain their upbeat target. How do you go from $1.34 to 43c in just one month given their comments below? Lindsay Bettiol is the BW analyst who provided the latest target - Brett Cottrell was the analyst responsible for all other reports/targets

20/02/2019 - BW Equities Research | February Update - 43c
23/01/2018 - BW Equities Research | December Update - $1.34
23/10/2017 - BW Equities Research | FZO Acquires Linewize - $1.34
03/10/2017 - BW Equities Research | October Update - $1.33
03/10/2017 - BW Equities Research | Maxis Deal - 95c
09/08/2017 - BW Equities Research | A$5.2m equity raise - 73c
23/05/2017 - BW Equities Research | Subscriptions and school sign-ups continue to grow - 63c
14/03/2017 - BW Equities Research | Family Zone Significant agreements announced - 46c
31/01/2017 - BW Equities Research | Family Zone Quarterly result: Subscription growth, stable cash outlook - 39c
15/12/2016 - BW Equities Research| Family Zone Updating model for recent acquisition of Sonar/My Net - 39c
21/11/2016 - BW Equities Research | Family Zone Sonar/MyNet acquisition - 41c
19/10/2016 - BW Equities Research| Family Zone Initiate Coverage with Buy Rating - 41c


The full content BW's latest Investment Recommendation - which is 2c above their 2016 target

QUOTE
Investment Recommendation
Retain Buy Rating with a $0.43/share target price
After a sustained sell-off, FZO now trades at ~3x our forecast
FY19E revenues – we find this absurd. While there are clearly risks
associated with the FZO investment thesis (ie. cash burn doesn’t
slow meaningfully), we believe valuations at these depressed
levels are completely unwarranted given the company’s clearly
demonstrated growth potential (ie. revenue growth of >100% is
forecast again in FY20). Accordingly, we value FZO at $0.43,
which represents 115% upside and ~7x FY19 revenue (in-line with
early-stage tech peers delivering comparable growth).



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--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Feb 8 2019, 01:32 PM
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Posts: 6,097
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In Reply To: blacksheep's post @ Jul 19 2017, 04:35 PM

Noticed today's RESPONSE TO APPENDIX 4C QUERY. Haven't taken much notice of this stock since seeing it ramped a bit too much for my liking. Appears ASX is asking about their negative operating cash flows

QUOTE
Family Zone Cyber Safety Limited (‘FZO’): Appendix 4C Query
ASX refers to FZO’s Appendix 4C quarterly report for the period ended 31 December 2018 lodged with the ASX
Market Announcements Platform and released on 31 January 2019 (the ‘Appendix 4C’).
ASX notes that FZO has reported:
 negative net operating cash flows for the quarter of $1,203,000;
 cash at the end of the quarter of $3,595,000; and
 estimated cash outflows for the next quarter of $3,966,000.
It is possible to conclude, based on the information in the Appendix 4C, that if FZO were to continue to expend
cash at the rate indicated by the Appendix 4C, FZO may not have sufficient cash to continue funding its
operations.


QUOTE
1. Does FZO expect that it will continue to have negative operating cash flows for the time being and, if not, why not?
The Company expects to have negative operating cash flows albeit these are reducing rapidly on an annualised
basis. The Company estimates that it will reach break-even in early 2020 through a combination of a recurring
revenue base and through recently announced material reductions in operating costs.
2. Has FZO taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?
In support of the Company’s growth strategy, the Company is in constant contact with advisors. The Company
is exploring a number of fundraising alternatives, including funding to take advantage of market opportunities
(particularly in our growth market of USA). The Board is comfortable with the trajectory of the business and is
comfortable about the ability to raise further capital in the future at the appropriate time which is not yet
finalised.
3. Does FZO expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?
Yes, the Company expects to be able to continue its operations and to meet its business objectives based on
its responses to items 1 and 2 above.
4. Please confirm that FZO is complying with Listing Rule 3.1 and that there is no information that should be given to ASX about its financial condition under that rule that has not already been released to the market.
The Company confirms it is in compliance with Listing Rule 3.1 and that there is no information that should be
given to ASX about its financial condition under that rule that has not already been released to the market.
5. Please confirm that FZO’s responses to the questions above have been authorised and approved in accordance with its published continuous disclosure policy or otherwise by its board or an officer of FZO
with delegated authority from the board to respond to ASX on disclosure matters.

The Company confirms that this letter and the responses above have been authorised and approved by the
Board.


BW Eqities has raised the following - according to their web page http://bwequities.com.au/transactions
$6m IPO Joint Lead Manger - August 2016
$3.2m Placement Lead Manager - March 2017 - BW updtes BUY with 109% projected return to 46c target
5.2 M Capital Raising Lead Manger - August 2017 - June 2017 BW updates BUY with projected return 25% and target 74c
$5M Placement Joint Lead Manager - December 2017
https://gallery.mailchimp.com/3c4aa62f5be7d..._March_2017.pdf
https://gallery.mailchimp.com/3c4aa62f5be7d...rterly_2017.pdf

DECEMBER 21, 2018 $2.5m in a placement to strategic and sophisticated investors at $0.225 per share.
16 August 2018 placement of 10,000,000 shares at $0.50 per share to raise $5,000,000

A lot of money raised, and spent, but not a whole lot of revenue from all those customers signed up as yet, although they claim

QUOTE
The majority of the Company’s revenue comes from the Australian and New Zealand education sector
which is subject to seasonality in which a significant portion of invoicing and cash collections are
completed in the March quarter. The Company had a record sales (contracting) period in the December
quarter of 2018 and accordingly in the current quarter e


Also appear to be relying on R&D receipts.

Sounded like a worthwhile product they are pushing, but certainly looks like more CR's to come unless cash collection markedly improves.

IPO'ed @ 20c - currently SP 16c

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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 


blacksheep
post Posted: Jul 19 2017, 04:35 PM
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In Reply To: blacksheep's post @ Jul 19 2017, 02:46 PM

Stunning finish - closed up 34% - 59c
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--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Jul 19 2017, 02:46 PM
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Posts: 6,097
Thanks: 2189


In Reply To: blacksheep's post @ Jul 17 2017, 12:45 PM

Another partnership - another rise. Up 13.64% - 50c - and no shorts smile.gif

http://www.shortman.com.au/stock?q=fzo

QUOTE
PERTH - 19 JULY 2017
LEADING NEW ZEALAND SCHOOL FILTERING SYSTEM TO BE INTEGRATED
INTO THE FAMILY ZONE ECOSYSTEM
● Family Zone has entered into a partnership with New Zealand’s Linewize
● Linewize is the most chosen filtering platform in New Zealand education
● Agreement to integrate the Linewize platform into the Family Zone ecosystem
● Opens up Family Zone to the parents of 130,000 students using Linewize’s systems,
plus the broader New Zealand market for parental control software

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--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Jul 17 2017, 12:45 PM
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Posts: 6,097
Thanks: 2189


Up 15% this morning on this news.
PERTH - 17 JULY 2017

QUOTE
FAMILY ZONE TO LAUNCH WITH INDONESIA’S NO. 1 TELCO
● Family Zone executes agreement to move to commercial launch with Telkomsel
● This follows Telkomsel’s agreement in Feb 2017 to trial Family Zone services
● Telkomsel is one of the largest mobile providers in the world and is the largest
carrier in Indonesia (and South East Asia) with 165 million subscribers
● Telkomsel is is 35% owned by SingTel
● First Indonesian Cyber Expert, Bijak Online, signed with expansion planned to
additional cyber safety and religiously focused organisations
● Telkomsel commits to a significant marketing investment to launch Family Zone to
its customers in Q3 2017


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--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
 



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