Crowd Media (ASX:CM8) ends the September quarter debt-free and cash flow positive

• Crowd Media (CM8) achieves positive operating net cash flow for the September quarter of $36,000, a 210 per cent improvement in comparison to the prior financial year
• As of September 30, the company has no debt with $2.57 million cash at bank, a substantial increase from its reported $340,000 from the June quarter
• The company recorded $214,000 in net cash flow from investing activities during the quarter which was used for further investment in intellectual property
• Commenting on the quarter, CEO Idan Schmorak says the company capitalised on the “excellent work” by expanding subscription products into new markets and regions
• Shares in Crowd Media are up 13.6 per cent to close at 2.5 cents

Crowd Media (CM8) has achieved positive operating net cash flow for the September quarter of $36,000, a 210 per cent improvement in comparison to the prior financial year.

As of September 30, the company reported it had no debt with $2.57 million cash at bank, a substantial increase from its reported $340,000 from the June quarter.

The company recorded $214,000 in net cash flow from investing activities during the quarter which was used for further investment in intellectual property.

Commenting on the quarter, CEO Idan Schmorak said the company capitalised on the “excellent work” by expanding subscription products into new markets and regions and creating larger opportunities for digital avatars.

“This was evidenced by the new big five tech company that has licensed Crowd’s Talking Head platform for a conversational AI solution to address their business challenges that can be scaled across multiple languages without additional hires and provide humanised interactions at scale globally,” he said.

“This milestone, together with all the other commercial and operational achievements of the past quarter, validate Crowd’s vision.

“In addition, the insights we gather from clients further supports the scaling of our software development.”

The unnamed big five tech company had purchased three licenses for the Talking Head platform for two years to provide them with digital avatars.

The company believes the initial licence is a cornerstone in Crowd’s relationship with the company and opens further commercial opportunities.

In the quarter, the company’s mobile subscription has expanded its market with Bedtime Stories now in Oman and Kuwait, AstroVIP in Czech Republic, Portugal and the Netherlands and Potion Games in Oman.

Shares in Crowd Media were up 13.6 per cent to close at 2.5 cents.