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Ladies and gentlemen, welcome, everyone, and thank you for joining Xref's Investor Update Conference Call. [Operator Instructions] I must advise that this conference is being recorded today, Tuesday, the 6th of July 2021.I would now like to hand the conference over to your speaker, Lee-Martin Seymour, CEO and Founder. Please go ahead.
Thanks, James, and good morning. Thank you for joining the Xref Limited Investor Update call. I'm Lee-Martin Seymour. I'm the CEO, Co-Founder and Director of Xref. I'll be providing an update on Q4 results for about 20 minutes this morning, and we'll then open the floor to any questions. We've got quite a few people joining us today, so make sure you press the button and ask your question. And if we don't have time, then just contact me following the call.A big thanks to our wonderful CFO, James Solomons and his team, for making sure that the 4C is out fast. It certainly echoes the internal clarity that we have as a business on our critical metrics and allows us to get the update out to you all very quickly so that we can get on with running the business. A great effort and thanks to James and the team.So let's start with a few highlights. As a team here at Xref, we are very happy to announce that Xref has reached a cash flow breakeven. The expectation was certainly for Q4 this year, and we've signaled it most of this year. However, we have been very close all year. So the $5.8 million in collections together with flat costs means that we have achieved a $1.9 million cash flow surplus for Q4, and that has contributed to an overall cash surplus for the full financial year of FY '21 of $250,000.So let's break out the P word this morning. We reported $800,000 in profit before tax for Q4, obviously, unaudited, of course, until our annual report is out in Q1. So a record $6.4 million in sales in the quarter together with a record revenues of $3.7 million. Overall, for the full financial year, costs are 33% less than last year, and sales are 66% higher. But let's, for a moment, remove FY '20 from our comparison and instead compare growth to that of 2019, which, for us, at the time, was a strong year. Xref has still grown 40% on 2019's results. RapidID has grown 2,200% since the day we bought it on the 1st of July 2019. But the real kicker for us is that we have done this in FY '21 with 26% less expenditure across the whole year compared to 2019.So where does that leave us? Well, our bank balance today is $8.1 million. Our trade debtors left over from Q4 rolling into Q1 of FY '22 of $1.9 million. So a cracking start for us over Q1. And the pipeline is very strong, leading into the first quarter of this financial year. So you might be thinking, well, what's happened? What's changed in the Xref's business? Well, recruiters and employers are simply searching now for better ways to verify candidates. Globally, people have a heightened sense of knowing who people are and where they've been, especially if they're recruiting remotely.So I thought I'd share quickly a journey of a new client so that you get to understand how these new clients are getting to us. Over the last few years, we, as a business, have built a wealth of online assets, such as free tools, thought leadership content that helped us as a business be found online by new clients. Once found, clients tend to -- especially in North America, they tend to not contact us, but they check out our business with other platforms to check out our credibility, which we have focused on over the last few years platforms like G2, Capterra and Google. We're now the highest-rated platform on all of those areas globally, and we're actually a leader within the G2 in North America.So once these clients are satisfied by what they see, they may self-serve their way into Xref Lite or they might start to use our free tools like template builder. This is how we've been able to win and continue to attract some of the largest organizations in the world. We've been working on our digital-first or you might call it marketing-led strategy now for a few years and have proven -- this has proven critical as the world returns to work, as we start to see, hopefully, the end of the pandemic. So let's turn now to a bit of outlook. What does our outlook look and feel like? Well, the key focus for 2022 is a 3-parter: sustained profitability, extended product offering and further growth. Really nice to understand. So let me pick that apart a little bit further.In terms of sustained profitability, keep in mind that when a client tops up with us, they are, in a way, forecasting their hires into the coming year. They predict our revenue for the following year and, at the same time, predict our sales of those replaced credits once they're used. Today, our annual revenue run rate is $15 million. In terms of client retention, it's also worth noting that in the quarter, 75% of our sales in Q4 were from our legacy clients topping up and 25% was from new client acquisition during the quarter. This shows not only our level of retention and ability to continually grow our clients over time but also the sophistication around how we are acquiring clients through various channels.Moving on to products. As detailed in the June presentation -- we updated it again this morning with the fresh figures. But in our June presentation, we signaled that we would be launching a new platform that will include things like internal pulse check-in, exit survey tools and additional global check-in services from partners that we've got around the world. The new platform and its extended product suite is fully self-serviced and will, in fact, offer -- be offered via subscription but will still include the pre- and postpaid credit models that you know and love. A staged product release will begin within Q1 to our 1,300 customers around the world and then on to full production release within H1.You'll find in the 4C that we continued to capitalize dev costs as we build out new platform. And you will note that 30% of our headcount of Xref falls under the management of our CTO (sic) [ COO ], Sharon Blesson. If you don't already know Sharon, Sharon has run our development team since 2016. She leads DevOps, our development team, data science, testing and project management and also takes the lead in our R&D, our ISO certification and our DVS governance. Sharon has managed numerous rebuilds of Xref, RapidID. She's built Xref Lite, Template Builder and People Search. She also has led the regionalization of our platform, including multiregional data centers and multi-language capabilities. So once launched, Sharon and I would be delighted to be able to showcase the new offering to you once live with a few clients.Let's now move to growth. What does this look like? And I actually spoke late last night to one of our shareholders that was saying, it would be really good to understand, is the world just returning back to work? What is actually happening within the talent market? Well, I'm here to tell you that if you Googled it, you'd find a wealth -- a plethora of information right now. And in fact, the early 2020s will probably witness one of the biggest migrations of talent the world has ever seen. Forbes currently are calling it the talent revolution.I'll walk you through a few components to this. Yes, we are going to have record returning workers. The UN has quoted that currently, we have 200 million unemployed globally that we have to work at getting back to work. Once our Board is open, we will see a migration of talent. Countries are getting on to the front foot of this. The EU campaign over the last month has been launched to attract talent into Europe post pandemic. And the U.S. Chamber of Commerce has just launched a huge campaign to revise immigration or to help with the huge skills gap that exists within the U.S.We're going to see record job movers. So people that have been in their roles throughout COVID are going to start to look. In fact, it's expected that 80% of employees will quit once restrictions lift. And salary pressure and pandemic-proofing are signaled as major reasons for this. If you don't know what pandemic-proofing means, it means that if you are currently working in a nonessential industry or a nonessential part of the market within the pandemic, you may be looking to move to an organization that is a little bit more pandemic-proof such as government, health, not-for-profit, education, et cetera.McKinsey in the last few weeks have said that 29% of employees won't return if they are asked to go back to the office full term -- sorry, full time. So companies need to get far more competitive in the war for talent, remote hiring of remote workers in what has been coined Zoom towns. In terms of Zoom towns, if you haven't heard that phrase, it's very new. It means remote, affordable places to live but with city-sized salaries. So recruitment will remain very much remote. And for us, we have a long journey ahead, and the focus is certainly on the talent.So how -- to wrap that up, how are we going to capture all of this growth? So you've heard me talk a lot over the last 2 years about Xref as a business changing from a sales-led business to being more marketing-led. This gives us simply scale and speed to make a step change. Sales by our channel partners has grown 110% this year and, in fact, is now 31% of revenue. So there are -- 31% of our revenue comes from integrated clients that don't actually use our platform directly but use us via their business's usual platform.Our product launch. What does our product launch or our product extension mean to us? Well, it means that we are able to expand our current addressable market 10x, offering tools to check and measure feedback throughout the hire-to-retire journey instead of simply sitting at that pre-employment level and creating far more self-service features, including subscriptions that allow our customer success teams around the world to focus more on what's important when growing an account.So to summarize all of that, we at Xref are at an inception point with product, marketing, cost base, addressable market, 0 cash burn and one mighty opportunity that, as a team, we are very excited about. So I'd like to allow us time this morning for some questions. So if everyone is ready, I'd like to open the floor, James, to some shareholder questions.
[Operator Instructions] Our first question is from [ Stella Wang ].
Great results considering how much the company has been challenged as well as benefiting from COVID. So Lee, just going forward, are you comfortable to give the investors some idea of a sustainable growth rate through the next couple of years -- a couple -- 2 to 3 years?
[Operator Instructions] We now have Lee-Martin Seymour back on line. Please resume.
Sorry, for some reason, I got cut off, but we're just waiting on questions, James.
The first question was from [ Stella Wang ].
I was just saying incredible year considering how you guys suffered as well as benefited from COVID. So my question was, are you comfortable in giving a sustainable growth rate through next 3 years of tide pushing you guys forward and backward on the balance? Are you comfortable to give us a rate?
I think whilst the Europe and North American regions are still very much in the grip of the pandemic and even Australia now have, again, further restrictions, I think, albeit, yes, we are delighted with the great results that have been released this morning. I think it would be premature to really be bold and beautiful to give 3-year growth rates moving forward. I think it would be prudent to continue to make the decisions that we've been making. And let's revisit that question, Stella, when the world returns to somewhat normality or a level of certainty. But certainly, we have growth as a major factor of the business. I think, as I said, we're at inception, and I think that we're looking forward to, obviously, continuing that step change.
That's very nice. I just got another 2 questions, if I may. The first one is to understand the current labor market situation a bit better. Do you see your clients struggling to find the desired number of candidates? For example, they normally want 10 candidates to choose from for 1 position. At the current stage, do you see them have to just live with 5 or 6 instead of the 10?
What a great question. I've been recruiting for 25 years, Stella, and I've never had 10 candidates for a role. So I think at the moment, what we can say is that it's neither a candidate-led market or a client-led market. It's a confused market. And if you do have a line of candidates waiting to be interviewed for a role, some of those will be current job seekers that have not worked or been let go for various reasons through COVID, some are current workers that are looking to make a change now that the market has become a little bit more certain.The challenge actually to an employer is to work out who's who in the zoo. The only way they can do that with the amount of candidates on the market is to take proper references. So the only way you can make sure a candidate can do the job you're hiring them to do is to check whether they have done it in the past. Now the unfortunate thing is that there are candidates that aren't working right now who lost their roles, not because of the job they did. They were probably incredible, but they lost their roles because the company they worked for could simply not survive in the market. And so they are available.But there are also candidates on the market that got let go because of their performance. And then there are people that have been retained throughout COVID for various reasons. So it's really tricky right now on the labor market to understand who you should actually hire. And to be honest with you, Xref loves the underdog. Xref loves the candidate that has had a long tenure, has not been on interviews for 10 years, hasn't got an up-to-date résumé but is an absolute diamond in the rough. And the way that we can bring those underdogs to the surface and allow them to shine is to bring their references to the employer as fast as we can and to make sure that they can make an insightful hiring decision on that person. So does that sort of give you an idea of what recruiters and employers are going through right now?
Okay. Thanks for that insight. The last one is about the subscription model you're going to add on. So currently, your subscription revenue is only from people search, I assume. And going forward, so what's your pitch to your customers to change from topping up as you go credit model to a fixed, say, annual rate?
Okay. Great question. Stella, we have been playing with subscriptions now for a couple of years. We have an array of clients that pay us a subscription to gain access to the client -- sorry, to the platform. We reverse engineer our credit caps into a subscription to allow them to do that. It really does suit the recruitment market where you might have 15 or 20 people recruiting 1,000 people a year. They would certainly like to pay as they go. So we have been playing with subscriptions.The new platform will have additional services such as exit checks -- exit surveys and pulse checks built within it as well as additional check-in services. So my answer is that we'd be supplying a client any way for them to interact with us. So you will be able to subscribe to gain access to the platform. As part of that subscription, you will have a capped amount of referencing credits. You will be able to use the exit survey tools as part of your subscription. And for any additional checks that you take along the way, well, they will be charged to you in a postpaid fashion.So really, with a platform that is being extended like ours, current clients will move across pretty easily. In fact, we've already been demoing the new platform to current enterprise clients around the world who have already shown a strong appetite to move straight into it. To move from a prepaid credit scenario to a subscription agreement means that they are, in fact, getting far more product to use. They will have a cap, but they also have access to far more additional services or additional checks.So really, we're doing all of it, Stella. However you want to interact with Xref and however you want your commercial agreement to be set up, we'll be able to handle it. But it's certainly something we've been playing with around the traps. We've been postpaid for checks for a while now. We have subscription clients. We have prepaid clients. And it's something we understand very, very well. In fact, as part of the new build of the new platform, we are -- we have architected a brand-new billing system to run alongside it to cater for whatever anybody wants to do. Hopefully, that answers your question.
Our next question is from [ Jonathan Shane ].
Firstly, congratulations on a phenomenal result. Obviously, you guys have done an awesome job over the last 12 months. Just looking at the numbers, Australia seems to be going extremely well with some terrific blue chip customers which you have signed recently and, more importantly, the annuity revenue you continue to generate. But my question, which I believe will have a significant impact for the company in the long term, is how you grow the international business and isn't now the time and the opportunity with the realignment of jobs within Europe and the U.S., a huge opportunity to really kick the business along?
Yes. I've got little to say about that. You encapsulated it beautifully. Our reason for growing globally has always been because we have an appetite to sell to clients that are an awful lot larger than they are at home in Australia. We have an average employee rate of anywhere between 5,000 and 9,000 employees in Australia for the big end of town. If you include small businesses, we're about 1,600 employees. But if you move to Europe, you're about 12,000 average employees. And if you move to the U.S., you are about 16,000 average, including small businesses.So really, for us, the opportunity growing globally has always been to be able to sell in the exactly the same way as we do here, but the demand for a larger amount of credits is far greater. The markets in the Northern Hemisphere work very differently. They certainly focus on self-service. In North America, if you have appetite to change the way your business is doing references, then you will Google. It's important then for Xref to be found, as I said. And then you will certainly check out that technology platform on a referral site. And if you please do, go and have a look at us on G2 and Capterra today, have a look at our Google reviews. This is very meaningful because what it does for us is turn that online customer into a lead. And then that lead can be converted if it's enterprised by one of our sales execs around the world or even the thousands of sales execs within our channel partnerships that might get that lead because that customer that's looking [ as a ] current customer.So you're absolutely right, Jonathan, we are leveraging the head out of our channel in North America and Europe to make sure that we're accessing those opportunities. We're making sure that we are found, and we're making sure that despite having competitors -- a couple of competitors in North America, we're making sure that we're the highest rated, and we're lowering the barriers to entry.We have -- you'll know we have some significant clients in North America who we've worked alongside to build the exit survey tools. So I think that it's going to be very exciting to be able to offer the North American and European market far more tools as they emerge out of pandemic. I've sat for 3 months during COVID in the office. I'm sitting in now with papers all over the floor, sketching out the new product suite and how it would work in terms of workflow and I handed it over to Sharon and the dev team last September. And it's been a mammoth build.So we haven't been sitting on our hands just looking at the figures during COVID. We've been preparing tools and products that have never been seen in the market, that will bring insights to the market that have never been seen before. And we bring it at a time where it's most meaningful and those clients that have let go an awful lot of people through the pandemic but looking at better ways to understand the skills in their business, the skills that are leaving their business and the skills that they could possibly attract back. So it's a very exciting time for us. I think July 1 was day 1 for the business, and we are right on time.
Our next question is from [ Craig Chapman ].
Lee, congratulations on the milestone. Just on capital management you're obviously seeing on about $8 million cash now, do you have ideas of what you're looking at doing? Obviously, you're rolling out overseas and there's expenditure involved with that, but probably too premature to pay dividends because you've got no franking credits. But is there use of the capital that is beneficial. I don't know if you can offset some of the debt or repay some without penalty or looking at maybe a wholesale partner or a competitor in terms of an acquisition.
So I think [ all certainly ] conversations that I regularly had throughout the business, I think, again, I'll press the button on the [ pandemic ]. We are certainly not out of the pandemic. And I think it's time to be prudent and be laser-focused on what we need to achieve. I think with our cost base, with our marketing-led strategy, with our product release, we have a very clear, probably the clearest strategy that we have ever had leading into FY '22 and '23. We know exactly our 3 sensitivity budgets have been written, and we know exactly what we are set to achieve this year. And it's about execution and keeping focused. It's very good to have those resources behind us.We took on the debt in June and July last year in a time where the market was very uncertain. In fact, we haven't utilized any of that debt, and the $250,000 of cash surplus across the financial year is on top of that. You'll see that we noted our bank balance movement in the commentary this morning.So it hasn't been used, and it was put there as a real safety measure because, globally, the market just didn't know what was happening. So very fortunate to be partnered with the team over at Pure. They've helped our business in great ways since we partnered with them. Yes, although we service the debt very well, the debt was structured exceptionally well at a premium to market. Yes, obviously, the conversation always happens around reducing that debt on the books. Right now it's about executing on our agenda for the year. And I think as we move through each quarter, we're very excited about what's to come.
The next question comes from [ Luke Winchester ].
A fantastic result. It was -- it blew my expectations out of the water. So congratulations there. Just a couple for me. First one, look, I did have to duck away at the start. So if you've commented on this, I apologize. But you gave the April update and then obviously, working back from the results you've given, my rough number is something like 50% month-on-month growth. Like what were you seeing in May and June there? Was it new customers? Was it existing customers expanding? Was it a bit of end of financial year use of budget? Just a little bit more because that growth rate is obviously very impressive.
Yes. Look, I think I sort of touched on it. 75% of the sales that were done in Q4 were from clients that we have had beyond 2 and 3 years, which is really where you want to see it. During COVID, we separated our business into 2 very distinct groups, nonessential and essential, nonessential being travel, hospitality, retail; and essential being health, government, education. At the depth of our -- of the COVID pandemic in May 2020, the essential businesses accounted for about 60% of revenue and nonessential was about 40%. And overall, our -- the usage of credits reduced to about $0.5 million across each month -- across May.Wind that forward to the June figure. We're now seeing about $1.1 million, $1.2 million worth of credits being used. 60% now is coming from nonessential businesses, which is great because that tells us as civilians that our organizations are getting back to work, and 40% is still coming from nonessential. However, that nonessential business has grown 25% to 30% during that time, but the companies such as Qantas and Crown Casinos and these nonessential services, hotel groups that we have, have come back to work.So I think the new business has still been exceptionally strong. And during the quarter, we had between 80 and 90 new clients. We don't count our Xref Lite customers in there. We wait until they become substantial payers. So the clients that we're attracting as described in the 4C are far more enterprise. And around the business, we are now actually connecting the dots. So we're seeing companies such as Capgemini uses in 3 regions around the world. Now their talent acquisition managers might not be connected. So we are going out there and saying, "Hey, well, you're using us in Norway and the U.K. and Australia. Could you use us in your business in Sri Lanka?"So we are really focusing on connecting the dots with large global customers that are using us in certain regions and building that growth out from there. And what you're seeing is the business is just maturing on the foundation that we've built over the last 11 years. Hopefully, that answers your question.
Yes. That's fantastic. And just a second one from me on the cost side of the business. You've, obviously, done a fantastic job of rightsizing that and maintaining that growth, which is fantastic. You've sort of been around that $3.5 million a quarter now for a couple of quarters. There's been a few comments on the call about new products and international expansion. What do you see that doing to the cost side? Do you think you'll be around that $3.5 million in the foreseeable future? Obviously, the business will grow when you'll have some incremental stuff there, but just as a general comment.
I can certainly suggest to you that our costs will remain flat and that our focus is to bring in 2022 again in a cash surplus way. So I think that you can assume that they will remain flat. There may be fluctuations throughout the year, but ultimately our strategy includes things like self-service, where our customer success team can remain the same size but get involved in far better areas of growth with our clients. And an example of that is that we currently build bespoke questionnaires on behalf of our clients. However, with the new platform, our clients will be given not only the ability to build their own questionnaire, they'll be able to build their own customer questions.I know that sounds simple, but we deliver our service in every language around the world. So there's technical complications with that. But what that means is that it will free up thousands of hours per year for our customer success team to really do a deep dive on ways to grow those clients in more meaningful ways over time. And then in terms of the marketing-led, we're not going to need an army of salespeople that knock on the door and pound the pavement. We're doing it in a far more sophisticated way now. And that's why I urge you, please, Google reference templates or Google reference collection or automated reference, check us out on those referral sites. We are -- our return on investment and the amount it costs us to acquire every client these days far outweighs what it used to. That's helped along by the market waking up to what we do as a business and the value we add, but it certainly is driven by the amazing work that Karina, our Global Marketing Director and the marketing team, do to get our brand out there and to bring home a record number of leads every month.
Yes. That's brilliant. I mean I've done that before of Google the template question and you do come up as the top result. So that's still great. Just one last quick one for me and then I'll jump off. Just on the RapidID. Now I remember the crypto, your customer, AML stuff was a big boon for that. Off the top of your head, do you know the split in crypto, the noncrypto in RapidID this quarter?
Look, I think that it's been a very interesting time watching Elon Musk on Saturday Night Live announce his love of a particular cryptocurrency and then all of a sudden in Australia, people are running to 2 of our clients to get ID checked and open their accounts. And then that echoes in the revenue that RapidID are doing. I think it's been tremendous to see that.I think the job is actually not to get too excited over that particular market, but to trend very carefully in the amount of investment that you put around it. I think we're making the right decisions about RapidID. We've really enjoyed the growth. We bought RapidID to answer a big question for the HR clients out there and that was to check if somebody is, in fact, who they say they are. And that has been a great growth within our business. And companies around the world are becoming far more -- have far more appetite to do an ID check on somebody before they hire them.So we were very -- before [ April ] or ahead of time, bringing in ID services into HR. I think it's certainly going to grow for us as we move through and out of the pandemic. But on the side, we have this API-driven link into the DVS within Australia. We're one of a handful of suppliers of the DVS in Australia. We're enjoying that on a few different levels where wholesaling out to partners of ours, we're using a direct product through RapidID, and we're also integrating it into Xref.RapidID will be further and more richly integrated with the new platform with Xref because it's far more -- far more checks that we could do apart from ID through that business. And I think you'll find that RapidID as a product will become far more holistic within the Xref brand. And we will put crypto on a watch list, and we'll enjoy it and monitor it as we have been doing over the last 18 months, but in a very prudent way leveraging it as much as we can and, at the same time, certainly managing it in a very prudent fashion. Does that answer your question?
Yes. No, it does. And that's fantastic. That's probably how I would handle it as well. Obviously, it's a space where we can have very differing views on the future, but I'd sort of agree with that approach.
Our next question is from [ Mark Wenzel ].
Congratulations on the result. I was going to ask about the RapidID as well, but obviously, that was well answered in the previous question. So I was just going to say -- I mean, if conditions are the same, I guess, in the next -- for the next couple of quarters, I mean, again, you didn't want to sort of talk about the 2-year growth rate, but what about -- over the next couple of quarters, is it going to be sort of similar growth rate to what we've had, I so guess, in the last quarter? Or how do you sort of see that?
I sort of indicated to it. I think what we've really got to remember is that, that $6 million in revenue was not postpaid. That was clients paying for credits for next year. So they've literally just waved the flag and said, we are on a hiring upturn for 2022. You've got clients really sort of sitting down and figuring out what their hiring levels are going to be for next year and buying credit to match that. So that's the biggest indication I can give you to the level of growth. And when you look at the cohort analysis, you'll see that we have very even revenues throughout all of the cohorts stretching back to 2014. We retain our clients really well. And for the Australian clients, they tend to top up at the end of financial year because they're using their budget, so they don't lose it, but they can use it on a service that benefits their next financial year.So we always do very well in this quarter. However, I can tell you looking forward, and I've already indicated that the pipeline looks very strong, the lead flow is very strong. And the reason we get these figures out and have these discussions early on is so that the rest of us can get back to running the business because it's a very busy time here at the moment. But in terms of forecasting, that's as much as I can say at the moment.
Our next question is from [ Yuri Phelps ].
I have a few questions on potential litigation overhang and also on the exceptionality again of the last quarter, please. Can I please start with a question regarding Tim Griffiths, who left your company, I think, in March. And I think you wanted to obtain external legal advice. I was wondering if you've done that, and if you could update us on that. So is there any -- is legally everything clear? Or is there some litigation pending or in the pipeline? Could you please start with that?And then connected with that, if a Board member leaves, it's not unusual for him to sell the stake. So are you aware of any things happening or that may happen? Is there an overhang with regard to what happened in the last quarter and overhang risk? Maybe you can [ answer ] that question, please.
Sure. Great question. So as everybody is aware, Tim and I built the business over the last 10 years. Tim is a friend of mine, and we had a scenario in March, which you can all go back and have a read of. At the time, we demonstrated the -- how well the Board has been put together because the decision-making at the time was flawless. And I can confirm that as of the 30th of March, there is no overhang of any litigation. Tim was good enough to escrow his shares until next year. So I wouldn't worry about any overhang. In fact, it was nice to communicate with Tim an update of our figures. Tim remains, together with myself, a major shareholder in the business. And so hopefully, that settles anything there. But we documented what happened within March, and certainly, the business has moved on since then.
Okay. That's helpful. And the second question on the -- what a huge cash receipt jump you have observed in the last quarter. We've been at -- hovering at $2.5 million, $3 million and now it's [ hovering at ] $6 million. I have understood your argument with regard to postpaid versus not postpaid. And -- but maybe you can elaborate a little bit more -- analyze a little bit more on how exceptional that was. Maybe indicate what your best guess for the current quarter is, if that is extendable or repeatable or may normalize to south a little bit. I'd like to understand, for example, if cash receipts -- if there was a concentration -- a strong concentration on one specific customer that is likely not repeatable in the current quarter or if there have been cash receipts from noncustomers included in that or if there's seasonality or anything else analytically that gives us a clue about is that the new normal or that may go down a little bit in the next 1 or 2 quarters.
Okay. So when we left March 30, we rolled into Q4 with about $1.3 million trade debtors. So obviously, that gave us a head start to the month. What you also need to realize is that when we invoice a client, they don't actually receive their credits until they pay. So our collections are -- can be as quick as 7 to 14 days. So when we're making a sale, we're receiving the cash very quickly with very good collections. And then moving into next quarter, I've already indicated that we've got $1.9 million in trade debtors moving into Q1 as a result of sales made in the last few weeks.So -- and tied into that also is, yes, a seasonal -- a small seasonal fluctuation in Australia and New Zealand of people topping up before the end of financial year so that they can utilize their budgets and purchase credits for use next financial year. But in terms of any major client payments, no, not at all, we do not have any, I suppose, customers -- clients, we don't have any of those within our business.
Our final question at this time is a follow-up from [ Craig Chapman ].
Sorry, Lee, I might have misheard, but the debt you've put in place as a safety measure in June and July last year, do you say you haven't used any yet?
Well, our balance is $8.1 million. We received $4.7 million after costs of -- with that debt. So it's -- so it would -- you could assume that it's still sitting in the bank balance.
Okay. So it is drawn?
It's there, yes, absolutely. It's part of our bank balance, yes.
Okay. And it's fully drawn down?
Correct. Correct.
We appear to have no further questions at this time.
That's great. Well, it's been a fantastic call this morning. We've had a lot of people on, so thanks for joining us. Please find the updated presentation on xf1.com and keep up to speed with the journey at our Twitter handle xf1. And if you'd like a one-on-one and you didn't get a chance to ask a few questions this morning, simply e-mail us at investors@xf1.com. Have a great afternoon, and thanks very much for all of your support.
Thank you. Ladies and gentlemen, that does conclude today's conference. Thank you for attending. You may now disconnect your lines.