AB1 0.00% 18.0¢ abarta resources limited

ab1 media, page-11

  1. 1,437 Posts.
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    I see what you're saying.


    They state it here:
    "The group recognised a profit for the period of $1,029,969 (inclusive of a one-off gain from the sale of intellectual property of $2,496,387) but generated a net cash outflow from operating activities of $558,991.


    Your issue is that without the sale of the games, the company would make a loss. I can understand why that might bother you. 


    It doesn't worry me, because AB1 developed those games. Those were AB1's property, and the sold them. They made money/gained shares by doing so, so why shouldn't they account for that?


    If the company was making up money from thin air, I'd be worried. But they're not. They sold a product and they made money. To me, that's just the same as them building a game and selling it to consumers, except this time they just sold the product to ICI. 


    It's a one-off, which means next year they'll need to be making $7.3 million revenue in the Half-year. This year they made $5.7 million (without the ICI sale, purely from their own apps). With CDH launching on Android any week now, Beast Quest releasing Q1 next year, Masterchef somewhere on the pipeline, OliveX stuff progressing, as well as their other apps like Valhalla Wars, I do honestly believe they can make $7.3 million in 1H2019. 


    So yeah, I understand your concern, to an extent. I understand what you are saying. You are annoyed they added a one-off payment into their calculations and it gave them positive cashflow. But I don't think shareholders are annoyed at that. It was a one-off payment for a bunch of products we built. Next year,we won't have that to 'boost' the balance sheet, but most shareholders are confident next year we will be making $7+ million in the Half-year, so we don't need another one-off ICI sale. 


    Regardless of whether it was a one-off or not, the company made a profit. You can't deny that. 


 
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