Dubber’s recently announced $7 million capital raising can’t come fast enough after the software maker announced a $9.9 million full-year loss.

The loss was 6 per cent worse than last year. Cash holdings dropped by 66 per cent to $857,777.

Dubber makes call recording software that can capture and analyse voice data.

A Dubber (ASX:DUB) spokesman told Stockhead the timing of the capital raising last week related to “the company’s on-going execution of its commercial strategy”.

“The company has sufficient capital to fund operations and execute its business plan, and is confident of its commercial execution and growth strategy.”

Two major shareholders, Thorney Technologies and Tiga Trading, did not participate after publicly taking Dubber to task on the day the capital raise was announced.

Dubber also raised $6.3 million in December to fund an expansion into the US.

The software maker is taking the growth route — spend now and reap the financial benefits later. Shareholders will need to hold on until revenue of $1.5 million matches the spending — $3.6 million in 2017.

Operational revenue of $510,817 was up 10 per cent in 2017 (excluding government R&D grants) so Dubber is not relying on that as financial fuel.

“Management is confident that forecasted cash inflows up to October 2018 from subscriptions, research and development tax incentives and additional capital raisings, together with the current cash balance, will yield sufficient cash flow to meet the group’s working capital requirements,” the company said.

Dubber says it has 22 telcos — with 12,000 active users — signed up for the service, including US telecommunications giant AT&T.

That’s an average monthly revenue-per-user of $3.55, still well down from their projected $10.

An investor wrote to Stockhead saying that for Dubber to break even it needs to be bringing in revenue of at least $10 million – which works out to just under 240,000 customers paying that above rate.

Dubber shares were unchanged today at 33c.