I mentally took into account other cash payments that would have been made in Jan and Feb too, and hence increased the potential liability to a few millions more, if needed.In any case, also note that I’ve already increased the liability from 4.9 to 5.5 million to be conservative. But yes, there would have been other cash outflows like ones you mentioned. Now, we would have also have administrator costs and as you pointed out few days back in many posts, that too is going to start adding up, very soon, unless something is resolved soon.
A major mistake was probably not getting the recent CR of 11 million fully underwritten.I don’t know if it is a matter of them not being able to get it fully underwritten or whether they simply did not get their budget it right, but it was a major mistake if their budget went wrong. Also, as I’ve pointed out earlier, it makes no sense to have actually come up with a full new team, with further additional costs, when we don’t have any cash. All this makes my head spin.
The Moz capital gains might not necessarily have to be paid right now itself, and perhaps could be delayed even if it is a liability, since the basis seems pretty controversial, when the liability is actually that of Grafex (at first glance at least). TON has probably made the provision on basis of conservatism and prudence. I’m not saying for sure that it is not payable but TON could probably try to defend its case that it is not payable by TON. On the negative side, that could mean, additional tax/legal costs in Moz, and once again, we don't have cash for that.
Anyway, hopefully, there shall be more clarity soon.
TON Price at posting:
6.1¢ Sentiment: None Disclosure: Held
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