I've had the same questions regarding the deferral of costs when the results came out
I don't have the exact numbers on me as they're on a different computer, but when I compared the quarterly cash flow expenses (which aren't accrued) vs. the P&L expenses (which are accrued):
- For FY15, P&L costs (excluding $1.4M goodwill write off) were ~100% of CF expenses
- For FY16, P&L costs were 130+% of the CF expenses
- For FY17, P&L costs were 101% of the CF expenses
For FY16, the discrepancy is due to the issue of shares and/or options to pay consultants which will show up in a P&L, however will not show up in a CF statement
Now without knowing exactly their accounting treatment, I don't believe that they've deferred a significant amount of future costs based on the numbers that I can see from the P&L and CF statements
Obviously if someone could get an explanation from the company it would clear things up
BIG Price at posting:
$1.30 Sentiment: Buy Disclosure: Held
