Locate Technologies Limited reported a significant cash burn in its latest quarterly cash flow report, highlighting ongoing operational and investing outflows amid stable financing arrangements.
- Operating cash outflow of AUD 3.48 million for the quarter
- Investing activities consumed AUD 1.88 million, primarily in intellectual property
- Financing activities showed a minor net outflow of AUD 85,000
- Cash and cash equivalents stood at AUD 1.81 million at quarter end
- Secured loan facilities totaling AUD 4.05 million remain available
Quarterly Cash Flow Overview
Locate Technologies Limited has released its quarterly cash flow report for the period ending 30 June 2025, revealing a challenging cash position marked by substantial outflows from operating and investing activities. The company recorded a net cash used in operating activities of AUD 3.48 million, reflecting ongoing costs related to staff, administration, and other operational expenses.
Investing activities further drained the company’s resources, with a net cash outflow of AUD 1.88 million. This was largely attributed to expenditures on intellectual property, signaling continued investment in the company’s technology assets and future growth potential.
Financing and Liquidity Position
On the financing front, Locate Technologies reported a modest net cash outflow of AUD 85,000 during the quarter. No new equity or convertible debt securities were issued, indicating the company did not pursue capital raising through the equity markets in this period. However, the company maintains access to secured loan facilities totaling AUD 4.05 million, provided by Pure Asset Management and Commonwealth Bank, with maturity dates extending into 2025 and 2026.
At quarter end, cash and cash equivalents stood at AUD 1.81 million, down from AUD 2.05 million in the previous quarter. Despite the cash burn, the company’s available financing facilities provide a buffer, potentially supporting ongoing operations and investment activities in the near term.
Governance and Compliance
Locate Technologies confirmed compliance with relevant accounting standards and corporate governance principles, with the board authorizing the release of the report. Payments to related parties were disclosed as immaterial, and no significant changes to financing arrangements or operational outlook were noted in the filing.
While the report does not provide forward-looking guidance or commentary on strategic responses to the cash outflows, the data underscores the importance of monitoring liquidity and capital management closely in the coming quarters.
Bottom Line?
Locate Technologies’ cash burn highlights the need for strategic clarity on funding and operational efficiency going forward.
Questions in the middle?
- What are Locate Technologies’ plans to manage ongoing operating cash outflows?
- Will the company seek additional equity or debt financing to bolster liquidity?
- How will investments in intellectual property translate into future revenue streams?