Cycliq Boosts Cash Reserves to $1.12M with $964K Quarterly Operating Cash Flow

Cycliq’s Cash Flow Strengthens Amid Operational Investments

Cycliq Group Limited (ASX: CYQ), a player in the consumer electronics sector, has released its Appendix 4C quarterly cash flow report for the period ending 31 December 2024. The company posted a net positive operating cash flow of $964,000, a notable improvement reflecting both revenue inflows and prudent cost control.

The quarter saw receipts from customers reach $1.92 million, contributing significantly to cash inflows. Meanwhile, Cycliq managed its outflows carefully, with payments for research and development totaling $53,000 and advertising and marketing expenses at $225,000. Staff costs and administration expenses were also contained at $262,000 and $195,000 respectively, underscoring a balanced approach to growth and operational efficiency.

Government Grants Provide a Helpful Boost

Adding to the company’s cash position was a government grant of $277,000, which helped offset some operational costs. This injection is a welcome support amid ongoing investments in product development and market expansion. Cycliq’s ability to secure such grants highlights its alignment with innovation and technology advancement priorities.

On the investing front, the company recorded net cash outflows of $306,000, primarily reflecting capital expenditure or other non-current asset investments. Financing activities were minimal, with a small repayment of $10,000 on borrowings and proceeds of $352,000 from equity issues, indicating no significant new debt or dilution pressures.

Liquidity Position and Outlook

At quarter end, Cycliq held $1.12 million in cash and cash equivalents, up substantially from the previous quarter’s $324,000. This improved liquidity provides a stronger buffer for the company’s ongoing operations and strategic initiatives. Notably, the company reported positive net operating cash flows, which means it is generating sufficient cash internally to support its activities without immediate reliance on external funding.

Director fees and related payments amounted to $32,000, reflecting standard governance costs. The company did not report any new financing facilities or significant changes to its capital structure during the quarter.

While the current cash flow performance is encouraging, Cycliq’s future sustainability will depend on maintaining or growing customer receipts and managing operational costs effectively. The company’s investments in R&D and marketing suggest a focus on innovation and market penetration, which could drive revenue growth in coming quarters.