It's just the beginning for Spenda!, page-229

Thanks for clarifying your points which I didn't understand fully earlier. Apologies for my rudeness. Leaving aside agribusiness for a minute...

Regarding the Invigo acquisition, yes $10m (132,951,740 shares at 7.5c per share) was ridiculous especially given that the revenue we've been told we were buying at the time doesn't appear to have turned up in the subsequent quarterlies. For example we were told, "Invigo’s unaudited accounts show it posting a small profit on revenue for the June quarter of $253k". We weren't told what revenue generated that but I had assumed it was likely to be a multiple of that figure. At least we paid in shares not valuable cash, so although it diluted shareholders, the only consolation is that those shares are now worth $4m, assuming the vendors still hold the shares!

The same thing could be said of Appstablishment. What happened to the Capricorn revenue? Or was all the revenue on the books we were given revenue that was coming from us?

Let's summarise the acquisitions at the reported nominal figures:

Appstablishment $43m
Invigo $10m
Greenshoots $5.1m

I understand that Appstablishment brings us a substantial software platform, but it appears we had paid for a lot of the development cost already. I really can't see how those figures can be justified for what we've got to be honest, except to note that they were purchased with script not cash.

Let's also look back at what Motopia bought Cirralto for. On 10 November 2016 Motopia announced the purchase was to be paid in script with 132.5m shares. The closing price on 9 November was $0.097, so that is a nominal value of $12.85m. The announcement also stated " Cirralto’s business has been growing considerably, with FY2017 revenue expected to exceed A$1,000,000." BTW, the company doesn't appears to have been trading on the ASX all the way through 2016 but the share price was flat at $0.097 from May through to November that year with very little volume traded.

So all up, nominally, $71m in value of script has been issued to put together what we see today, not including the capital raises along the way. Does anyone have a quick figure of how much capital has been raised since Nov 2016?

Red flags against management for sure.

The other thing it would be great to get more info on is this information that is in the recent RAAS "Positioning Paper":

"Q2 FY22 results show strong growth with a client loan book of $8.1m yielding an average 18.7% to December 31. SPX lent $25.5m and was repaid $23.5m."

If we assume that all $615k of revenue in the quarter was solely attributed to margin on the lending (which likely overstates the revenue earned from lending) then $615k / $23.5m works out to an average clip of just 2.6% of the ticket on transactions we have financed either the buyer or seller side inclusive of any credit card processing fees collected. Block, post merger of Afterpay and Square, in contrast, are looking to clip 4% of the seller's ticket through a combination of supply chain finance and merchant fees. Again, it's too early to tell how these figures bed down over time and I take at face value the company claim that yield on lending yields 18.7% but I found that insight interesting.