Seeking Thoughts on Recent Reports, page-5

Some relevant figures from the annual report:

Although revenues grew by $1.6 million, they are still less than 2015 and 2016 numbers.

Current Assets - Current Liabilities = $2,470,318
Cash burn = $2.5 million p.a.



The mandatory change in accounting standards to AASB15 seems to have made a significant impact on the company's accounts.


What is $2,435,830 in "deferred revenue"?

Revenue from sales $8,072,811
So more than 30% of revenues are these "deferred revenues". That's a pretty big asterisk.



It appears that the company has booked revenues based on signing contracts, where there is a future requirement for professional services before the contract can actually be delivered.

Perhaps this is the correct treatment under the new accounting standard, but it may be causing confusion in the market - especially because the previous years' figures being used as comparison were not prepared under this standard.




CEO total compensation package = $565,567

as a % of total revenues that is 7%

This would rank Urbanise as #3 in this study of over-compensated CEOs

To put this in perspective, Telstra CEO Andy Penn earned a $5 million package on $25.3 billion revenues: 0.02%. Is Saurabh Jain worth 350x more than Telstra's CEO?

To look at it another way, CEO salary as % of market cap = 3.3%
Telstra = 0.01%
330x

Stock price 21/1/19 when Saurabh announced as CEO: 4.2 c
Stock price now 2/9/19: 2.5 c

Reduction in market cap: $11.6 million , approx -40%



From Payscale.com: