BIG 0.00% $2.22 big un limited

simple clear no nonsense - What have BIG done wrong, page-74

  1. 214 Posts.
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    Here's another question from the accounts:

    - In 2016 they said "Over $400,000 has been invested in establishing Big Review TV in New York." - http://www.bigunlimited.com.au/Investors/?page=company-overview

    - Then in the related party note they disclose that

    DNA Behaviour International Resources (DNA), a company related to the Director Hugh Massie,
    was granted the exclusive license to sell the Group’s video products within New York City, US in
    December 2015. The agreement with DNA for sales distribution of the video product represents
    a license fee (paid over a 10 month period) and a revenue share agreement to be implemented
    based on successful sales and a number of Key Performance Indicators (KPIs). For the current
    financial year, the total revenues received relating to the distribution agreement whilst Hugh
    was a director was $100,000 (2016: $100,000).

    Did he pay anything for the license? Why spend $400k to set the thing up and then hand it over to the Chairman and he repays it over the next 4 years?
 
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