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Originally posted by kevin103: ↑

Excellent post Eventhorizon. Gimme just spouts endless BS and everything that IOU does is just wrong to him/her. Gimme has zero credibility imo. He's saying IOU is not profitable even when all IOU business divisions are eventually firing on all cylinders. What a total BS of a statement to make with zero analysis and just from talking out of his backside.

Yes your numbers are absolutely correct Event. It is a margin of between 2% to 4% monthly on the prepaid inventory that's turned over. Lets run through IOU's half yearly December ending accounts.

We see $2.8mil revenue generated from Mobile banking divisions from really just 1 full quarter of unhindered operations as July to Sept end IOU was still in management & business transition - so only October to December end was the full operational quarter. I would say Mobile Banking services division generates about $2mil on average per quarter therefore $2.8mil in normal times would be $3.5mil to $4mil half yearly.

Next we see Other income and within that is about $670k from Prepaid inventory just from the Malaysian market - see below. To put the timeframe into context - IOU did not have the cash for prepaid inventory revenue until about early December after IOU raised $10mil in mid November. IOU has now parked about $1.5mil in prepaid inventories as shown in the December end Balance sheet below. This would be the minimum weekly prepaid inventory sales weekly as IOU's CEO mentioned in his video presentation - he used a $1mil a week example but in fact IOU has committed $1.5mil.
This $1.5mil per week quantum would generate up to $6mil prepaid revenue per month at circa 3% gross margin or upwards of $540k gross profit monthly.

Now Gimme wants you to think we will have a corresponding $540k expense below the line to generate this $540k gross profit - and it effectively wipes out all 100% of the prepaid revenue gross profits in the form increased corporate and selling expenses. If Gimme has any idea , he would know setup costs for these type of business are usually one off and once our distribution channels are setup and running , IOU's tech platform and infrastructure basically is automated and runs itself on almost very minimal additional below the line costs. How clueless or deceitful does Gimme have to be to make the claims he did.

So basically if we stay on just $1.5mil prepaid inventory revenue weekly this translate to a $540k gross profit with very little additional below the line costs. With IOU having its own internal marketing team & proprietary tech platform - corporate costs are also shared across all business divisions namely, Mobile Banking services, Prepaid digital payment division and BNPL. The more revenue stream IOU generates - the lower the % cost of IOU's below the line corporate & admin expenses will be. Basic accounting 101 which Gimme cannot see.

Furthermore - IOU is a very lean operating business see P&L below. If we remove most of the compliance, professional fees and employee benefits expenses which were largely due to the July-Sept board transition and legal fees - IOU in the December half yearly would be almost break-even. Also the non-cash expenses in amortisation & depreciation would be another +$275k positive movement to IOU's EBITDA - further validating IOU will very much be a profitable business in the coming quarters when Mobile Banking Services + Prepaid inventory processing + BNPL are all firing and running to capacity.

IOU's CEO KL Khong in his video presentation emphasised about the importance to IOU's company values that they run a profitable business and generating good returns for shareholders. With $55mil cash at IOU's disposal - we can see growth and profitability is near on the horizon IMO.

All IMO. DYOR.

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This is the kind of analysis that got me into IOU Kevin, will we be the first BNPL company to be profitable? I read somewhere that even the multi billion dollar AfterPay is still running at a loss, is this true?
I think IOU will be a world leader if you are right

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