no more acquisitions has been my constant commentary since this...

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mr_delta

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29/02/20

16:30

Post #: 43234805
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Originally posted by DoubleDown!: ↑

For what it's worth I don't think this is a good report. A loss of $25m this year and shares on issue ballooning by 50% to close to 1bn.

Gross margin of only 50% means just to cover employee benefits you need another $20m of revenues. That's more than double.

Loss of goodwill on acquisitions of $3.5m means we've overpaid for something.

Consultants costs you'd hope were in relation to acquisitions and not going to be repeated.

Doubtful debts up by $700k to nearly $1m. Means we're selling goods to people who can't afford to pay us. With revenues of $18m that's 5.5% of sales not being paid for.

I think it's pretty clear that Animoca have expanded way too fast, they cannot handle everything under their umbrella. This company is wildly spinning out of control. A lack of financial control, a lack of regulatory control and management problems are plaguing the company.

They cannot go on like this and stay viable. They need to get their house in order, start generating revenue from their assets, stop the dilution from acquiring underperforming companies and show the shareholders they are in control.

Very fortunate to be in suspension. This report released at this time would see the company share price smashed.

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no more acquisitions has been my constant commentary since this time last year... sometimes it makes sense to grow organically by building on your core strengths rather than just go out and buy something by dishing out stocks from your register... I agree on this point with you whole heartedly...

thanks for the other part about revenue and how to break it down.... hopefully sane minds prevail IF & WHEN we relist (here or elsewhere) and take a more SLOW BUT STEADY approach...

thanks for the detailed reply...

AB1 Price at posting: 18.0¢ Sentiment: None Disclosure: Held
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0 Great analysis

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no more acquisitions has been my constant commentary since this...

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