I've started looking at this company - seems the current mgt team is mediocre (at best). The product could easily be replicated and the investments they have in a few companies (2 of which are essentially worthless given the redundancy of their products).
Audiostack: $3.9m x 80% discounted due to no liquidity = $3.1m
InTheRoom: $1.8m x 50% discounted = $0.9m
UneeQ: $0.5m x 50% discounted = $0.25m
Investments (liquid): $4.25m
Cash: $4.8m - $0.8m estimated burn to 30 June 2024 = $4.0m
IP (website, software & IP) at cost = $1.8m
Cash & IP = $5.8m
~$10m value considering the above and run-rate receipts are ~$5m ($3.7m YTD + $1.3m forecast). Trades at essentially 1-2x revenue if you consider the investment in IP & burn.
Seems cheap despite the risk of product being redundant (i.e. a MS or Google GPT can replicate the product instantly in 6-12 months time) but you'd invest in this company if you thought they could innovate faster (e.g. Slack vs. MS Teams is a good example where it went the opposite direction and now Slack is essentially redundant). Staff costs are through the nose as well which is a red flag.
Thoughts on the above?!
