The Dunedin-based company this week posted an expected $15.7million loss for the year to March, booking annual operational costs around $22million while retaining $24million cash in hand.
Craigs Investment Partners broker Peter McIntyre said the company was spending $4 in order to make $1 in sales, and it needed to show investors a "quantum shift'' in sales to attain its own target of $100million revenue for full year 2019.
Turnover for 2015-16 was $5million, primarily from US work.
Pacific Edge chief executive David Darling said, when contacted, he stood by the revenue projections.
"We're a growth company so we have to be investing in sales,'' he said.
While conceding investors and analysts ‘‘want to know now'' how sales will get from $5million now to $100million, he said three large US customers held the key.
Both the Veterans Association (VA) and health insurer and provider Kaiser Permanente had memberships in the millions, with Kaiser alone "having more members than the population of New Zealand''.
"This is very doable and we stand by it,'' Mr Darling said.
"Those two companies can be transformational ... the VA is a deal done and dusted and just needs a users programme trial,'' Mr Darling said.
Mr McIntyre said while Pacific Edge "are working hard'' to negotiate sales, it required a "monumental shift'' to get from $5million sales to $100million sales in less than three years.
He suggested if sales revenue did not get traction shortly, operating expenses would use up the $24million cash in hand, and Pacific Edge might have to consider going back to its shareholders for more capital. When asked, Mr Darling ruled out returning to shareholders for capital; having raised $35million last year, with a balance of $24million at present.
"No. We don't plan on that,'' he said when asked about capital raising.
Forsyth Barr broker Suzanne Kinnaird said the $24million cash in hand equated to about 18 months' operation expenses, at cash burn rates of about $8million per six months.
"Cash burn will continue to be a key metric to watch. However, our modelling indicates Pacific Edge has sufficient capital to reach a cashflow positive position,'' she said.
Ms Kinnaird did caution that at this stage in its life cycle, there was "a high degree of uncertainty''.
Of the three "key milestones'' Mr Darling highlighted during the year, Mrs Kinnaird said opening access to the Veterans Administration was "ticked off''.
