Software maker Zyber is still on the hunt for a reverse takeover partner after release a test version of its file-sharing app.

The tiny software company — it’s worth about $5 million — had $1.5 million left in the bank at the end of September and expects to spend $209,000 this quarter.

Zyber’s app — which promises a free and secure way for businesses to share large files — was finally delivered in “beta” test form for desktop and iPhone in August.

The app can connect to leading file-sharing service Dropbox. It will soon will feature in Android’s Play store and work with Amazon Web Services — but will be up against a myriad of already-established options, such as Tresorit and Onehub.

Zyber (ASX:ZYB) grew out of a backdoor listing of Dourado Resources last year.

The eponymous Canadian enterprise security startup, founded by former Bank of America executive Clay Epstein, launched onto the ASX in February 2016 to considerable excitement from media and shareholders.

But Mr Epstein had quit the CEO job by June and the replacement team was gone by the end of the year. The COO and VP of sales were out in January this year.

In the third quarter their replacements quit too.

Jason Tomkinson and Paul Callender resigned as directors, Elizabeth Hunt quit as company secretary, and Peter Wall stepped down as chairman.

New commercial opportunities

Mr Wall in September told Stockhead the board was looking for reverse takeovers.

Zyber’s new board reiterated in the quarterly report that it “continues to review new commercial opportunities both within the cyber security space and in other sectors”. But in the meantime they had refocused on Zyber’s technology.

The prior board had looked at opportunities such as medicinal cannabis and resources, but each time the ASX had stymied the change of business activity.

The ASX had declined to grant Zyber waivers around reverse takeover rules, such as allowing shareholders to trade the deal after it’s been announced.

The ASX doesn’t allow investors to trade shares after a reverse takeover is announced, and companies trading under 2c can only raise capital via a reverse takeover if the new shares are issued at 2c or higher.

Zyber has not traded above 2c since July last year. It’s now sitting at 0.8c.

Dourado days

The new Zyber board must still contend with issues from its Dourado days.

In 2015 while still called Dourado, the company issued 482.6 million shares without shareholder approval.

The result was an ASX ban on issuing any more equities without a shareholder okay until February 27, 2018.

The company made a $2 million loss in fiscal 2017, with consultancy fees for corporate, legal and accounting advice making up $1.2 million of that.

In the coming quarter Zyber expects to spend $35,000 on technology development, $4000 on marketing and $170,000 on administration.