Like many of you, I am also absolutely pi$$ed off with how this...

Like many of you, I am also absolutely pi$$ed off with how this suspension is being handled. I am not surprised though that it is extended; as I said last week if they can't solve the issues in 4 weeks time, they aren't going to solve them magically in the last couple of days.

As everyone is in a furious mood (including myself), let's start with the negatives.

1) Absolute zero transparency on what's going on....no narrative, no update, no nothing. They simply can't say "ohh by the way, we need another month"....after asking only 2 days initially and going directly to 4.5 weeks straightaway, now another month. Absolute zero respect to the shareholders!

2) Considering that audited reports came out in (extended) time, now the plausible reasons for this saga in my opinion are:
a) they possibly cooked up some ridiculous JV with some non-standard terms or structure or company, and it failed the ASX sniff test
b) taking the chance of reviewing the new JV, ASX pulled them up on what happened with the old JV with Blue Aqua, and why the subsidiary magically disappeared everywhere including from today's annual report

If it's #a, I doubt it would take this long unless the company really wants to get this across the line and the ASX really is objecting to let it pass, which implies the latter might be the main issue?

3) What sort of a company releases an annual report without a Chairman's address? No summary, no list of achievements for this year, no thanks to the shareholders putting out some positivity for the next year...nothing! Everyone says Paul Rosen is a very well respected individual in the industry, but is it too much to ask him to write a Chairman's note? Was there anything that he did to the company, after taking up the free 75mil options, worth approx. $720k?

4) Where is the 4c for the last quarterly? All we've heard in the past 3-4 months is that the company has been very busy working on the financial reports. 4c is pretty simple compared to the audited reports, why not release it today along with others? The company almost always releases the financial reports on the very last day after market close, not even a day before....why not put it out now rather than drag it to next week/Mon morning

Sorry for the negativity folks, rant over

On the positive side, I'm really relieved to see the audited report out today. If this was the skeleton that the company has been hiding behind the JV news, it has the power to bring down the entire company. So, really pleased to see this out. I've compared the numbers with the prelim report (and last year's audited report)...mostly tallied up nice and well. I think the 320k reduction in the losses in the final report is because of removing the below provisions that were mentioned in the prelim report.



The only other major difference that I spotted is in Trade and Other Receivables section.

Prelim report figures are:


Final report figures are:



The bottomline figures are the same in both, however the audited report is showing allowance for credit losses as ~50% of the trade receivables, which I don't know whether it's a difference in accounting method or a one-off credit loss allowance or points to a bad business model. I am not qualified to derive any conclusion from this. Even in the worst case, I can live with that for a $15mil mc company drawing $8.5mil annual revenue.

Compared to the last year's annual report, it looks way better, but it isn't promoted as such.

New Top20 looks pretty decent (except the obvious dilution from cap raises this year). All directors and other Asian associates seem to have retained their holdings and some new names too.
-> Jimmy Thomas and Ruth, who were a sub-holder until last year have added again ~22mil shares since their last notice in Dec
-> Altor Capital fund took a decent chunk under their Altor Alpha fund focused on small companies. Refs: https://altorcapital.com.au/home, https://altoralphafund.com.au/home
-> Scintilla Capital seems another fund Ref: http://scintillacapital.com.au/
-> Other names seem like retail investors
-> Interestingly I couldn't spot Wilsons anywhere, which probably means they were buying under multiple names on-behalf of their clients e.g. the funds mentioned above?

Overall on balance, I think we are not staring at the abyss. If the JV is a good meaningful one, I think the market will excuse these shortcomings considering the small mcap and the potential for growth. We have to wait and see. Spec market has been hot recently, a pity if we drag this out too late. Fingers crossed, we come out of suspension much earlier than the new target date.

All IMO, please DYOR and have a good weekend everyone!