Ann: March Quarterly Activities Report, page-25

@kevin103 is right. Bad debts should be measured against the company's income, which in this case is called NTR, net transaction revenue. IOU are doing a ZIP and reporting it as a percentage of TTV so it looks small. 7% is not healthy and you'll need to watch the trend from here, but for context SZL and ZIP were 54% and 49% respectively at their last results which is why they've been so badly punished.

In any event, the document which holders need to read is the cashflow, especially the part about funding on pages 4-6. I'm amazed they have let it get to 0.3 quarters of funding left, it is extremely precarious especially given there is the remaining 50% of the IDSB acquisition to pay out (even if it is lower than $21M, they have only $3.1M in uncommitted cash left). To me, still unbelievable they spent so much of their cash on IDSB; to date it has delivered almost nothing. And where is this funding facility that was supposedly going to be delivered many quarters ago? Given the new merchants added they need this ASAP. Without it, they basically need to slow down BNPL as soon as possible, because they don't appear to have enough cash to pay to merchants if the TTV keeps growing. I hope there's not too many 6 month loans in there? (edit: I just read it again and 8.6.1 of the 4C states IOU has "reduced its generation of new BNPL business activity to reflect the available capital". WTH!)

Almost wonder if the ASX will let them trade this close to the wind. I'm impressed the SP is holding up.