It was really bothering me that the cash receipts for the...

It was really bothering me that the cash receipts for the December quarter were not closer to the $8m mark which I had been anticipating. I went back over the numbers and previous updates from the business and discovered a few things that I had overlooked. They are as follows:

1. BNPL terms are up to 6 months - this is significant because a quarterly only covers 3 months

2. Loan moratorium ended in January which means some payments are still pending
3. The cash flow statement does not provide a breakdown of what income stream makes up the cash receipts. Remember, there's BNPL plus Digital payments and Mobile banking transactions (iSentric business)

The iSentric business reported lower transactions in the December quarter because of the scheduled outage while migrated to a higher capacity data center. Recorded transactions for December quarter was approx 75m. This was about 4m less that was recorded in the June quarter. This gave me the idea of referring back to the June quarter cash receipts as BNPL revenue was quite low so it's easy to establish the income derived from the iSentric business.

June cash receipts were $1,701,000
BNPL NTR was only $48,000

That means the iSentric business made up $1,653,000 off 79m transactions. That averages out to 2c a transaction. I know we've been told it's closer to 3c but I'm going to go off the numbers I'm getting which are more conservative.

December quarter was 75m transactions. Multiplied by 2c per transaction gives. $1,500,000. Ok so that gives us the iSentric business income for the December quarter.

Receipts from customers: $6,087,000

Subtracting
BNPL Revenue: $611,000
iSentric Income: $1,500,000

Equals
$3,976,000 Customer BNPL repayments from September

This is subtracted from the payments to merchants figure from the September quarter which was $5,517,000.

$5,517,000 - $3,976,000 = $1,541,000

There you have it, $1,541,000 yet to be repaid from the September quarter. Combined with payments to merchants in December which was $5,262,000 you get a total accounts receivable of $6,803,000. This is money that is yet to come through as cash receipts. This sits on the financial statement as an asset until such time that any customer account is unpaid and would then be classed as a bad debt.

Year to date receipts from customers $8,046,000
Accounts receivable of $6,083,000 (asset)

Not including any dividends from IDSB.

Needless to say, it's going to be an interesting annual report. The trailing repayments are probably going to still have IOU post a modest loss however the IDSB dividends are still unknown.