Ann: Half Yearly Report and Accounts, page-43

This is a very telling report - it clearly shows the two 'sides' of Spenda that have been discussed by many posters on these threads.

On one side you have the numbers, which paint an unhappy picture:

• less than $1M revenue for the half, up ~46%
• net loss $5.9M for the half, up +370%
• employee expenses of $4.3M (over 4.3x the revenue)
• 75% of the total assets on the balance sheet are intangible, or the 'goodwill' paid for all the acquisitions (reminder: 'goodwill' is effectively the amount you paid over the book value of the company - in simple terms, it is the 'premium' you paid to get hold of the company. If the acquisition doesn't work out as hoped, the goodwill eventually gets written down/off - it will disappear off the balance sheet).
• The total consideration paid to acquire Appstablishment ($55.4M) + Invigo ($8.1M) + Greenshoots ($1.5M) equate to 92% of Spenda's current market cap.

Then on the other hand you have the narrative fluff at the beginning:

• Adrian uses the word "transformational" three times and throws "foundational" in there as well
• There's talk about "the Company's vision to become a profitable fully integrated software solution (...) took one step closer to becoming a reality through the acquisition of three independent but synergistic businesses" (they are nowhere near close to become profitable, look at the numbers for yourself. Also, who tries to become profitable by overpaying for businesses that don't deliver revenue at any scale?).
• He evidently feels the need to remind people that the acquisition was "overwhelming supported by the Company's shareholders"
• There's a reference to "the A$50b Australian eCommerce industry" being "a key strategic opportunity"

To this viewer, there's clear dissonance between what the words say, and how the numbers read. I have no idea where the SP will go on this but I'll again caution that Spenda's own commissioned report pointed out most listed lending peers trade on around 5.7x price/sales. If you assume Spenda hit their revenue growth targets for the remainder of FY2022 they'll end up with around $3M annual revenue. That means at today's SP of 2.4c and market cap of $70m, Spenda is still trading on 23x sales. I'm not suggesting people sell (that's up to your own risk appetite), but I certainly would not be averaging this thing down. Caveat emptor.