GTH
Gathid LTD
ASX
Appendix 4C and Quarterly Activities Report
Sentiment:
Quarterly Activity Statement
30 July 2024 12:04 AM
Gathid Ltd reports a stable net cash outflow, secures a Fortune 500 customer post-quarter, and continues to address a dispute over the sale of its RightCrowd physical security business.
Delay expected
The resolution of the dispute over the consideration due for the sale of the physical security businesses is delayed.
Summary
- Gathid Ltd has released its 4C report for the fourth quarter of the 2024 financial year.
- The company's cash and cash equivalents balance at the end of the period was $7.44 million.
- Annual Recurring Revenue (ARR) was $0.7 million at the end of Q4 FY24.
- Sales revenue in Q4 was $169,000, up from $158,000 in the previous quarter.
- The net cash outflow from operating activities was stable between Q3 and Q4 at around $1.1 million.
- A dispute with the buyer of the RightCrowd physical security business regarding the completion statement remains unresolved.
- Since the quarter ended, Gathid has secured a new Fortune 500 customer with an initial ARR of USD $185,000 per annum, bringing total ARR to $1 million.
- The company is working with the ASX to lift the suspension of trading of its securities.
- Payments to related entities during the quarter were $0.107 million, representing remuneration and fees to directors.
Sentiment
Score: 6
Explanation: The sentiment is moderately positive due to the new customer acquisition and stable cash outflow, but tempered by the ongoing dispute and ASX listing uncertainty.
Positives
- Gathid secured a Fortune 500 customer after the quarter ended, adding USD $185,000 in ARR.
- Q4 sales revenue increased to $169,000 from $158,000 in the previous quarter.
- The company's net cash outflow from operating activities remained stable at around $1.1 million.
- All existing customers due to renew their contract with Gathid during this period have done so.
- Marketing strategies have resulted in a pipeline of opportunities in Asia, Australia/Oceana, UK and the USA.
Negatives
- A dispute with the buyer of the RightCrowd physical security business regarding the completion statement remains unresolved, creating uncertainty about the final amount due.
- The company is awaiting the resolution of the dispute over the consideration due for the sale of the physical security businesses to be able to provide to the ASX information to allow continued quotation of its securities under Listing Rules 12.1 and 12.3.
- The company did not add any new customers during the quarter.
Risks
- The unresolved dispute over the sale of the RightCrowd physical security business could impact the company's financial position and ASX listing.
- The company's ability to maintain its current level of net operating cash flows is uncertain.
- The company is reliant on sales negotiation and completion to convert its pipeline of opportunities into revenue.
Future Outlook
The Board supports management in maintaining the growth trajectory of the business with spending management in mind, expecting to continue some carefully managed increase in headcount.
Management Comments
- Reflecting on this past quarter, Gathid has made with key customer renewals and recently won an exciting new Fortune 500 customer, adding to the company's growth trajectory.
Industry Context
The company's focus on identity and access governance aligns with the increasing importance of cybersecurity and compliance in the current market, as evidenced by the articles published in Security Magazine, Dataversity, Enterprise Times UK, CSO, Enterprise Security Tech, and SecurityInfoWatch.
Comparison to Industry Standards
- It is difficult to compare Gathid's results to industry standards without knowing the specific size and focus of its competitors.
- However, companies like Okta, Ping Identity, and CyberArk are key players in the identity and access management space, and their growth rates and financial metrics could provide a benchmark for Gathid's performance.
- The successful acquisition of a Fortune 500 customer suggests that Gathid's solution is competitive and meets the needs of large enterprises.
Stakeholder Impact
- Shareholders face uncertainty due to the unresolved dispute and ASX listing suspension.
- Employees may experience job security concerns related to the company's financial performance and potential cost-cutting measures.
- Customers benefit from the company's continued investment in its software platform and customer support.
- Suppliers may be affected by the company's spending management initiatives.
- Creditors face potential risks related to the company's financial stability and ability to repay debts.
Next Steps
- Continue working to resolve the dispute over the sale of the RightCrowd physical security business.
- Work with the ASX to lift the suspension of trading of the company's securities.
- Focus on sales negotiation and completion to convert the pipeline of opportunities into revenue.
- Maintain a growth trajectory with spending management in mind.
Key Dates
- 21 September 2023: Completion of the sale of the physical security businesses
- 29 February: Announcement to the ASX regarding dispute with Bloom
- 19 April: Announcement to the ASX regarding dispute with Bloom
- 10/4/2024: CSO Gathids New Access Mapping Tech Promises Affordable And Streamlined IAM
- 10/4/2024: Enterprise Security Tech Gathid Revolutionizes Identity and Access Governance with Innovative Directed Graph Model
- 10/4/2024: SecurityInfoWatch Gathid Introduces Model For Identity And Access Governance
- 16/4/2024: Enterprise Times UK Security News From The Week Beginning 8 April 2024
- 15/5/2024: Easy Prey Podcast Challenges of Employee Onboarding and Offboarding
- 22/5/2024: Dataversity Taming Access Creep: Strategies to Rein in Unnecessary Privileges
- 22/6/2024: Security Magazine Beyond compliance theater: Crafting a compliance strategy that works
- 30 July 2024: Date of the 4C release
Keywords
ARR, Gathid, 4C, Quarterly Activity Statement, RightCrowd, Fortune 500, Cash Flow, ASX, Security, Revenue
GTH
Gathid LTD
ASX
Sector: Software & Services
Filings with Classifications
Better than expected
16 April 2025 7:19 PM
Quarterly Activity Statement & Business Update
- The company's ARR growth of 142% indicates better than expected performance compared to the end of FY24.
Delay expected
23 January 2025 10:41 PM
Quarterly Report
- The company is waiting for the resolution of a dispute over the sale of its physical security business before relisting on the ASX.
- The audit opinion in respect of the FY24 Financial Statements may require further actions by the ASX before any relisting takes place.
Better than expected
23 January 2025 10:41 PM
Quarterly Report
- The company's ARR growth of 12% in the quarter and 92% since the end of FY24 is better than expected.
- The company secured two new customer contracts and maintained a high renewal rate, which is better than expected.
- Sales revenue increased from $272k to $390k, which is better than expected.
Worse than expected
21 November 2024 5:50 PM
AGM Results
- The 'first strike' against the remuneration report indicates that the company's compensation practices did not meet the approval of a sufficient number of shareholders.
Worse than expected
20 November 2024 11:15 PM
Annual General Meeting Results
- The rejection of several key resolutions, including the remuneration report, incentive plan, and placement facility, indicates worse-than-expected results from the AGM.
Capital raise
20 November 2024 11:15 PM
Annual General Meeting Results
- The rejection of the 10% placement facility suggests that securing additional capital may be more challenging than anticipated.
Delay expected
20 November 2024 8:05 PM
Annual Report Presentation
- The finalization of the sale of the RightCrowd businesses has been delayed due to an ongoing dispute with the buyer, Bloom.
- The audit of Gathid's FY24 financial accounts has been delayed due to Bloom's failure to provide necessary documents to the auditors.
Worse than expected
20 November 2024 8:05 PM
Annual Report Presentation
- The company's overall profit was driven by the sale of its RightCrowd business, masking a significant loss from its core Gathid business.
- The ongoing dispute with Bloom regarding the sale of RightCrowd and potential further claims creates significant uncertainty and financial risk.
- The auditors' inability to provide an unqualified opinion on the financial statements due to lack of access to information from Bloom indicates a significant shortcoming in the financial reporting process.
Delay expected
4 November 2024 8:00 PM
Quarterly Report
- The finalization of the sale of the physical security business has been delayed due to a dispute over the final payment calculation, impacting the company's ability to provide the ASX with the required information for relisting.
Worse than expected
4 November 2024 8:00 PM
Quarterly Report
- The unresolved dispute regarding the final payment from the sale of the physical security business represents a significant negative deviation from expectations, creating uncertainty and delaying the company's ASX relisting.
Worse than expected
18 October 2024 1:15 AM
Suspension Notice
- The announcement details numerous companies failing to meet reporting deadlines, resulting in potential delisting, which is significantly worse than expected performance.
Capital raise
16 October 2024 6:58 PM
Notice of Annual General Meeting
- The company is seeking shareholder approval for a 10% placement facility, allowing it to issue equity securities up to 10% of its issued share capital over a 12-month period.
Delay expected
30 July 2024 12:04 AM
Quarterly Activity Statement
- The resolution of the dispute over the consideration due for the sale of the physical security businesses is delayed.
Worse than expected
10 July 2024 2:15 AM
Market Announcement Long Term Suspended Entities
- The document indicates that numerous companies have failed to meet their reporting obligations, which is worse than expected for market compliance.
Delay expected
10 July 2024 2:15 AM
Market Announcement Long Term Suspended Entities
- The document lists numerous companies that have delayed lodging required periodic reports.
Worse than expected
20 June 2024 7:12 PM
Release to ASX
- The expected cash balance is lower than the previously announced target.
Delay expected
20 June 2024 7:12 PM
Release to ASX
- The FY23 R&D Tax Incentive claim will be received after 30 June 2024.
- The FY23 income tax return submission is delayed due to the expert determination process.
Delay expected
19 April 2024 3:11 AM
Business Update
- The expert determination process regarding the dispute with Bloom is ongoing.
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