Hey T, I’ll answer this in detail post results and do a deep dive on the financials.
But for reference this is the key info from the AR. Note the additions which is the key. This is a recurring expense but is being capitalised so the accounting treatment is very different
The quick answer is that CFO’s generally do it for optics but they will deny this and pull out a whole host of reasons backing up their rationale. This is why bigger companies typically have cleaner financial statements. This is obviously a generalisation as there are many examples that could counter this statement.
Again, per the AR above you can see the purpose is development costs aka R&D. Don’t get fooled by accounting trickery. This is an expense dressed up as an asset. All window dressing. This treatment will change when MWR move to profitability IMO
MWR Price at posting:
17.0¢ Sentiment: None Disclosure: Held
