Where is this 40% conversion rate coming from? They state 791 of the 14727 customers have accepted (5-6%) which I’m taking as locked in and revenue can be recognised. So not much revenue at all and mostly deferred.
In the accounting treatment part of the announcement I’m not sure they are waiting to recognise the revenue until acceptance. Hopefully they are not just amortising each receipt as it comes in over 12months before locked in. I tho k they may have stated in another announcement revenue is only recognised when binding.
They have spent 19m of the 20m sponsorship pool (18m this qtr in cash receipts) so a good thing about that is they can’t Ponzi this by continually swapping without acceptance as they will require acceptance before Fc sponsor any more. Possible Bad thing is that unless acceptances rise (time lag) the cash receipts will drop off and the revenue won’t materialise as the secured cash need to be handed back plus anorther 24% cancellation fee
Please correct : other opinions if you believe I’ve misunderstood