SE1 - Sensera Limited

[greggles]

I noticed Sensera Limited heading north this morning and couldn't find a thread on it.

SE1 has declined from 41c to 11c in the last 11 months, but today it has come off its recent lows and is currently trading at 14.5c, up 16% from yesterday's close of 12.5c. The impetus for the move is an announcement this morning that Sensera's wholly owned subsidiary Nanotron Technologies GmbH has achieved and deployed a new release of its nanoLES 3 Location Engine and Server software. Through nanoLES 3 5K, Sensera is now able to accurately and reliably track up to 5,000 distinct objects in real time - more than double the scope of existing commercial installations.

I have no idea what this means for Sensera's bottom line, but the news has pushed up SE1's share price this morning and it is now sitting just below resistance at 15c.

 

[greggles]

Some interesting share price movement in Sensera Limited recently, having risen from 11.5c to a high of 15.5c in just four trading sessions. No news of note has been released by the company recently, so there's no apparent catalyst.

Last month SE1 successfully completed a $3 million dollar placement which was announced on 8 March and coincided with a significant increase in volume. Towards the bottom of the announcement there is the following quote from Sensera CEO, Ralph Schmitt, who said:

We are pleased to gain investor support for the company's growth plans by completing this raise. This is an important time for Sensera, as our continued delivery of record revenue quarters has driven a requirement for additional working capital to support the significant growth that we are experiencing.

The Company is on-pace to deliver US$10.5M to US$11.5M revenue in the year ending 30 June 2019, which represents growth of approximately 70% over the previous fiscal year (2018) and an approximate 100% increase on the first half revenues for this fiscal year. We currently have a strong backlog for the balance of FY19, and completing this capital raise empowers us to continue building product to support the backlog and pipeline for early 2020.

Pleasingly Sensera directors and management also participated in the round, underscoring their belief in the Company's growth prospects.

A very positive assessment of the company's current position and short term prospects. I suspect that this may have something to do with the recent price action and feel that SE1 may see some further gains if the company continues to perform to expectations.

 

[Dona Ferentes]

I noticed Sensera Limited heading north this morning and couldn't find a thread on it.

were you heading N, because SE1 has been Southward for most of its short (listed Dec 2016) life

SE1 has declined from 41c to 11c in the last 11 months

and now, coming off a trading halt and confession session, has reopened at all of 2c

The Update asks What went Wrong? and tried to answer What are we doing about it? but realistically Why it won't Happen Again is moot. Cut costs, change management, but their customers just want CHEAP and will shop around (and probably mislead with anticipated demand <you carry the costs, we'll cherrypick what we want>).

 

[Dona Ferentes]

26 March -

Sensera advises that it is in default of a financial covenant under its debt facility with PURE Asset Management and Altor Capital Management. The covenant requires the company to maintain a minimum cash balance of $1m at all times.

SE1 is now discussing alternative funding options and potential asset sales with its debt providers .....

then a Speeding ticket on 16 April

We note a change in the price of SE1’s securities from an intraday low of $0.004 to an intraday high of $0.015 today. We also note the significant increase in the volume of SE1’s securities traded from today.

and again today, 38% rise. Another ASX query to follow?

 

[Dona Ferentes]

tricky

I'm nominating SE1 for May comp. The reason is; tis the season but there is no reason

SE! is a company focused on fast-turnaround R&D, bespoke design and fabrication of specialised high-performance MEMS

 

[Dona Ferentes]

seeing I "tipped" this for May competition, based mainly on the fact that something is happening (perhaps I should put 'something' in "inverted commas")...

.... then I better ask (myself) a question or two.

From the graph above, it looks like death spiral since floating late 2016 .... Lots of good ideas, lots of positive announcements:
Sept 2017 - secured eight customers for our microfabrication services including two significant Nasdaq-listed entities. Sensera has been completing design, development, prototyping services (non-recurring engineering) and is on target to transition these two major microfabrication clients to recurring manufacturing contracts in Q4 CY17. NOT REALLY
Nov 2017 - wholly owned US subsidiary Sensera Inc has entered into a material 3-year supply agreement with one of its anchor microfabrication customers. AND?
June 2018 - Co has multiple customers engaged in the development of organ-on-a-chip microfluidic devices (MEMS devices accurately mimic functions of the human body, including the respiratory, circulatory and digestive systems). Haven't heard much since
April 2019 - More than 500 micro-location systems now in service with customers tracking up to 5,000 objects per deployment... But the quarterly states Placement proceeds are to " be used primarily for working capital and go-to-market operating expenses expansion to drive future revenues", Cash Bleed.

So, here we are in 2020. Along the way in the last year, a placement (@ 8c = well underwater still), trading halts, changes to registry. Now, there's a Covid overlay, and / but somehow there's buying interest. Volume. Speeding tix. and a claim, the

Company will be fully funded to invest in growth and reach profitability

Only thing that has happened is Braemac, based in glamorous Sydney suburb of Alexandria
https://www.braemac.com/

If you are looking to de-risk your supply chain, control inventory levels or handle the logistics of importing parts, Braemac has the ability to tailor client-specific programs that will leverage our proven supply-chain infrastructure.

Don't know what to make of it, but price and volume action is .

((and from Aug 2017 (I wonder if that will happen?) :looking to list on "major exchange" by 2020))

 

[Dona Ferentes]

seeing I "tipped" this for May competition, based mainly on the fact that something is happening (perhaps I should put 'something' in "inverted commas")...

story of my life. Now June... up 20% and I suspect more to come

SE1 has entered into a strategic partnership with the US-based global product development and technology company Triton Systems, Inc. to integrate Sensera’s Location-Aware™ IoT building blocks with Triton’s artificial intelligence and sensor innovations for a wide range of asset tracking applications for the [US] Department of Defence.

The two companies have signed an agreement, which leverages Triton’s decades long experience as a solutions provider and integrator to the DoD and Sensera’s swarm™ technology, to create a reliable, end-to-end solution for monitoring and tracking the location and operational-readiness of military and security assets across DoD sites globally.

 

[Dona Ferentes]

bit of a pivot for SE1 ... looks like money coming in and they survived Covid. Up on the news.

• FQ4 revenue at US$2.3m resulting in FY20 revenue of US$11.7m and 15% yoy growth
• FQ4 cash improved from previous quarter of $0.3m to US$1.3m
• COVID-19 sensor to be deployed in significant volumes throughout FY21 with early orders of US$2.0m
• Sensera enters FY21 cautiously optimistic about growth in the overall business

Plus:
With the restructuring, cost cutting initiatives and influx of monies the Company has been managing cash in order navigate through the current COVID-19 related business issues. The company has applied for forgiveness of the PPP loan program in the US and it is currently the belief of management the company qualifies for the full amount to be forgiven. Confirmation is expected during FQ1.

 

[Dona Ferentes]

my May tip

up 92% today (kwinkidink; main lift started soon after I posted at lunchtime!!)

 

[Dona Ferentes]

The dilution from issuing of warrant hangs over SE1. From 20 May

senior debt providers, PURE Asset Management and Altor Credit Partners Pty Ltd ... [Company] entered into an agreement with them to resolve the default of a financial covenant under its debt facility. The Lenders have also agreed to waive default interest and provide more relaxed covenants, including the waiver of the negative pledge covenant, which has allowed the Company to receive US$621,000 of US Government support under the Payroll Protection Program promissory note. The Company has also received an additional amount of approximately €200,000 in German Government support.

In exchange for the above concessions, the company has issued 51.2m warrants to acquire fully paid ordinary shares in the Company (with 40.0m issued to PURE and 11.2m to Altor). The issue of warrants will fall under the Company’s existing 7.1 capacity and is not subject to shareholder approval. The exercise price is set at A$0.03 per share with anti-dilution clauses for share issuance above 15% in any 12-month period.

With the quarterly due within a week, there may be some more +ve news about revenue, Cash on hand.

Forgiveness on PPP loan program in US expected soon - another fillip?

Covid-19 seems to be an impairment in terms of getting to the marketplace around the globe, but the Medtech sector for its microdevices business is getting some traction.

To achieve growth, a capital raise must follow?

 

[Dona Ferentes]

as threatened, I bought into SE1 yesterday. 57c and then a few at 59c. (still got a bid sitting there, but won't chase)

((((((HOLD))))))

 

[Garpal Gumnut]

Jayzoo @Dona Ferentes and @greggles .

This little number is not for the faint hearted. All good fortune with SE1. I lived in EnC in the 70's briefly.

gg

 

[Dona Ferentes]

Group recorded revenue of US$11.80m, an improvement of 16% on FY19. Pleasingly the gross profit increased by 37% to US$5.67m with the gross margin increasing from 41% to 48%. Gross margins improved in the second half of FY20 from 40% in the first half to 59%, which was in line with expectation as result of improved product mix and supply chain cost improvements.

Underlying EBIT losses were reduced by 61% on FY19 to US$3.71m. A significant contributor to the improved results was a major restructure of the IOT Solutions division together with lesser restructuring activities in Microdevices and Group corporate resulting in total annualized operating expenses being reduced by US$3.0m. As a result of the restructure in IOTS the Company incurred a restructure cost which was finalised at US$1.22m representing redundancy and legal expenses. These have been removed from statutory EBIT to arrive at underlying EBIT.

The company also benefited from reductions in cost and cash expenditure from April to July due to COVID-19 initiated pay reductions and the group received additional cash through the US Payroll Protection Program and the German Short Time Program.
The carrying value of goodwill on the IOT Solutions business due to the Nanotron acquisition was reassessed in the current market environment and an impairment of US$1.89m was booked. These have been removed from statutory EBIT to arrive at underlying EBIT...

In September 2019, the Group replaced a US$1.96m invoice financing facility with a US$4.33m four-year secured debt facility with an interest rate of 11.75%. Finance costs increased in FY20 as a result.*

Cash balances at the end of the reporting period were US$1.40m compared to US$0.84m at the end of the previous reporting period. Net cash used in operating activities was US$3.07m (2019: US$8.16m) was largely funded by the financing activities described above, a US$2.15m capital raising as well as COVID-19 initiated government programs.

* I can introduce them to Laurie Connell, if needed

 

[Dona Ferentes]

buyer back for SE1 .... 5.7c to 6.4c on fair volume today.

 

[Dona Ferentes]

this one has been up and down; The current climate isn't doing the business any help, in that growth appears to be delayed

While a difficult market environment during COVID-19 continues, the MD Division has been able to move multiple customers and opportunities forward to lay the foundation for a robust FY21....

Today's announcement to sell the second string of the bow, the IoT business, has probably had an urgency to it that could have been avoided if growth was there. At least cash hemorrhaging could slow
HIGHLIGHTS:
• nanotron Technology GMBH entity sold for US$8.7m cash
• US$5.1m of debt with Pure Asset Management and Altor Capital to be retired
• US$1.0m Promissory Notes to be paid to clear the company of debt
• Increase in the MicroDevices business is expected throughout FY21 with new customers for MEMs based sensors.

Market reacted enthusiastically, from 54c to 68c, then found that it is all a bit on the never-never, so it has pulled back to 57c:
"Several new unannounced customers are providing additional designs and development-based revenue that are expected to ramp into production in the second half of FY21."

 

[Dona Ferentes]

(late Aug) as threatened, I bought into SE1 yesterday. 57c and then a few at 59c.

still in SE1. Had some second thoughts but have stuck it out. If the Quarterly is good (due in a week or so) and it could be, then the decision may be vindicated

((((((HOLD))))))

 

[Dona Ferentes]

still in SE1. Had some second thoughts but have stuck it out. If the Quarterly is good (due in a week or so) and it could be, then the decision may be vindicated

buyers still filling underneath

((((((HOLD))))))

 

[Dona Ferentes]

another pop, over the last few days. There have been no announcements of any note, but I've observed morning buying then , often, a retreat on lower vol in the pm. Been happening for a while, such that SP hasn't galloped. Is this any different?

Sold half into the rally: (Unlike before, the rally was late in the day). Likely to pop again this morning??

(Six month, daily)

 

[Country Lad]

There have been no announcements of any note,

Speeding ticket followed by "we know nuthin' "

 

[Dona Ferentes]

out this morning at 11c. (B @ 5.7c)

faint of heart.