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- California-based semiconductor equipment specialist Revasum (RVS) is almost debt-free as it continues to bring new products to market
- Over its most recent financial quarter, Revasum paid back an outstanding term loan with Bridge Bank completely
- This means the only remaining debt owed by Revasum is a US$2.2 million (roughly A$3.1 million) loan receives as part of the U.S. CARES coronavirus relief act
- Revasum said this loan, however, is likely to be completely forgiven based on the terms of the loan from the U.S. government
- Of course, it’s important to note that the company still have some funds available on a US$8 million (roughly A$11.3 million) revolving credit line with Bridge Bank
- As far as the company’s cash flow is concerned, Revasum pulled in roughly $2.9 million (roughly A$4 million) in customer receipts but spent US$4.15 million (roughly A$5.9 million) on operating activities
- Shares in the company closed 2.5 per cent higher at 20 cents each this afternoon
California-based semiconductor equipment specialist Revasum (RVS) is almost debt-free as it continues to bring new products to market.
The company told shareholders in its latest quarterly financial report, which covers the three months to October 4, 2020, that it has completely repaid the remaining US$1.8 million (roughly A$2.5 million) of a term loan with Bridge Bank in its entirety.
This means the only remaining debt owed by Revasum is a US$2.2 million (roughly A$3.1 million) loan received under the Paycheck Protection Program (PPP), which is part of the U.S. government’s Coronavirus Aid, Relief, and Economic Security (CARES) Act.
This loan requires that three-quarters of the funding are spent on payroll costs to keep U.S. workers employed and paid. Importantly, if the borrower uses the funds for eligible purpose in a specific timeframe, the loan can be forgiven.
In Revasum’s case, the company said it expects a high percentage, if not all, of the PPP loan will be forgiven.
Of course, it’s important to note that on top of the now-repaid term loan, Revasum has a US$8 million (roughly A$11.3 million) revolving credit line with Bridge Bank. Amounts borrowed under this credit line mature and become payable in 24 months. As of October 4, Revasum had around US$1.4 million (roughly A$2 million) available on the revolving credit line.
As far as the company’s cash flow is concerned, Revasum pulled in roughly $2.9 million (roughly A$4 million) in customer receipts but spent US$4.15 million (roughly A$5.9 million) on operating activities. This marks a negative operating cash flow of roughly US$1.25 million (around A$1.8 million) for the quarter.
With $US2.8 million (roughly A$3.9 million) in available funding, this means the company can last two more financial quarters at current spending levels.
Nevertheless, shareholders seemed relatively impressed with today’s report, with Revasum shares climbing 2.5 per cent to close worth 20 cents each.
