Education technology company Kneo Media’s quarterly report was all activity: sales teams growing here, a US listing there, country-specific content on its way all over the world.

But scrolling down, a reader would have found the same detail that attracted the scrutiny of the ASX.

It made $0 in the last quarter, and $1000 in the three months before that.

In fact, since the December quarter of 2015 — that’s 13 quarters — they have taken just $378 million cash from customers.

Kneo (ASX:KNM) has been listed since 2011 and rolling out distribution deals and pilot schemes for its educational digital games since 2014.

Should we call in the undertaker?

The ASX is concerned that with no money coming in, a bank account that has less than a million bucks in it, and estimated spending in this quarter of $790,000, Kneo may not be long for this world.

Kneo responded with the usual answer: negative cash flow will continue for the foreseeable future, but we promise we can find the money.

It’s owed $500,000 by the New York City Department of Education, which is now being pursued by “well-connected partners and advisors in New York”.

It reckons a bigger sales team in the US and a longer sales cycle might help generate sales.

They also referred to unspecified “funding options” they could take up if those two options don’t work out.

Survival mode

The company has been surviving off a $3.85m capital raising in mid-2017 which bolstered reserves to $4.8m.

The company makes money from licensing its products.

Kneo says it’s signed up thousands of “seat licences” for its educational games with New York City schools, but in the annual report last year the auditor said it couldn’t find documentation of said licences.

The company had to explain itself to the ASX that it tenders for seat licences and bills for the total figure contracted without itemising the individual seat licences it reports to the ASX.

Kneo shares were flat at 2.4c.