By the same token Shane, I always thought there was a similar opportunity with Vonex.
No wonder Paul was cock-a-hoop on LinkedIn; this deal could be the one which gets him across the line for 78.9m Class A Performance Shares.
"78,869,761 Norwood Class A Performance Shares which convert into ordinary shares upon Norwood generating gross revenue of at least $200,000 from two separate third party contracts in any 12 month period (which may be the same 12 month period or different 12 month periods for each contract) within 30 months from Completion ;"
http://www.asx.com.au/asxpdf/20150422/pdf/42y1l77krwm3v1.pdf
In my mind, "generating gross revenue" would mean the customer has been invoiced. In the normal course of business, one would expect monthly billing. But a small problem here. 12 months from the start of billing would be outside the "30 months from Completion". Completion was announced on 8/6/15. As of today that is 664 days or about 22 months.
http://www.asx.com.au/asxpdf/20150609/pdf/42z2dn4nrycx0h.pdf
But, imo, all will be resolved through the wonders of Accrual Accounting. The invoices do not have to be paid in a timely manner, if ever. Afterall, in 2015, Norwood disclosed there was Corona sales; it was in multiple presentations. And yet, I could never find any references in the financial statements and I cannot remember any disclosures to the market about them falling over. Help me out Shane, if my memory has lapsed.
Whilst I may have your attention, you never got back to me re: the points I made about positive Gross Margins. You are correct that it was in announcement and in the subsequent Financial Statements. But, my point is the Accounting Policies of Norwood created a positive margin, where I believe there was not one in practise. Imo, Sales & Marketing is a Discretionary Expenses item. A company can choose to ramp up/scale back sales staff and promotional expenditure. However, fees to Apple and Google are mandatory if you choose to use their sales channel.
I am reminded me of the time I worked in a Private Public Partnership consulting/research business. We consulted to ASIC and the ASX whereby we were able to run an algorithm to identify anomalies/statistical outliers in terms of Accrual Accounting and the impact on Company and Executive Performance.
I always wondered why there was announcements relating to $3m deals. Why not $2m or $4m?
"78,869,761 Norwood Class B Performance Shares which convert into ordinary shares upon Norwood generating gross revenue for any 12 month consecutive period of at least
$3,000,000 within 36 months from Completion."
Whilst I will be accused of down ramping with the release of a positive announcement, perhaps holders can think about how much they have spent accruing their holding compared to how much the Performance Shares will cost their prospective holder.
(20min delay)