Zelira Therapeutics Quarterly Cash Flow Report - 30 June 2024
ZLD (ZLD) Share Update July 2024 Monday 29th
Zelira Therapeutics Reports Quarterly Cash Flow Update
Zelira Therapeutics Limited (ASX: ZLD) has released its quarterly cash flow report for the period ending 30 June 2024, highlighting key financial activities and cash movements.
Instant Summary:
- Net cash outflow from operating activities: $553,000
- Government grants and tax incentives received: $920,000
- Net cash inflow from financing activities: $1,029,000
- Cash and cash equivalents at end of period: $586,000
- Unused financing facilities available: $3,248,000
Operating Activities
During the quarter, Zelira Therapeutics reported a net cash outflow of $553,000 from operating activities. This included significant expenditures on research and development ($175,000), staff costs ($392,000), and administration and corporate costs ($715,000). Despite these outflows, the company received $920,000 in government grants and tax incentives, which provided a substantial boost to its operating cash flow.
Investing and Financing Activities
The company did not engage in any significant investing activities during the quarter. However, it reported a net cash inflow of $1,029,000 from financing activities, primarily from the HOPE SPV funding. This inflow helped offset the operating cash outflows and contributed to an overall increase in cash and cash equivalents.
Cash Position
As of 30 June 2024, Zelira Therapeutics had $586,000 in cash and cash equivalents. This is a notable increase from the previous quarter's ending balance of $118,000. Additionally, the company has $3,248,000 in unused financing facilities, providing further financial flexibility.
Payments to Related Parties
Payments to related parties during the quarter amounted to $259,000. This included executive board remuneration ($164,000), non-executive board remuneration ($21,000), accountancy fees ($49,000), and company secretarial services ($25,000).
The net cash outflow from operating activities, despite being partially offset by government grants, indicates ongoing financial pressures for Zelira Therapeutics. The positive cash inflow from financing activities suggests that the company is actively managing its liquidity needs. Investors should be aware of the company's reliance on external funding to sustain operations.
Investor Reaction:
Analysts may view the report with cautious optimism. The receipt of government grants and the successful securing of financing are positive signs. However, the continued cash outflows from operating activities highlight the need for ongoing financial vigilance.
Conclusion:
Investors should closely monitor Zelira Therapeutics' financial performance in the coming quarters. The company's ability to manage its cash flows and secure additional funding will be critical to its long-term success. Staying informed on the company's strategic initiatives and financial health is essential for making well-informed investment decisions.