+1. I have been absent the last week or two and nothing has changed since the early September deals. Apart from missing out on the jump on the ex-intel appointment it seems I've missed out on the down side too.
I was thinking for a second shot at the upside but it seems clear that preserving capital will be forefront for many other investors. Clearly September saw no revenue deals come through. The recent goal shifting is not a great indication of the company management either. Announce one thing, change their mind - we'r enot paying the advisers, we'll change the incentives offered?
Haven't seen so much shifting in a company in my shorter than most investment timeframe.
What's most concerning is people are still hanging on from the 4-6c times on the technology and dreams to come. Frankly the lack of revenue or updates on key promised items over the last few months should have alarm bells ringing that progress is not going as fast as it should. Remember - they're being paid a heck of a lot of money, and that the longer this drags on that $10m cash or whatever it was at least count, dwindles.
I think most here should be up in arms still about these crazy performance incentives. The company is still a small cap - like any other. Technology with lots of blue sky potential IF it gets off and underway like most of us are plugging into our calculators. Until then they need to act like it.
2.5 million "AUD" in revenue, NOT PROFIT - and two guys are getting cash bonuses paid on 30% of USD of a salary you're already paying for with or without revenue.. That's 108,600 USD give or take for both Martin, and again for Athan. So your first $2.5million in AUD revenue is going to pay out $217,200 in USD Bonuses, at 0.75 exchange rates the company s paying $289,600 AUD in bonuses on 2.5million on revenue.
That's 11.6% of the revenue paid out in bonuses costs. Not business, running costs, but just "Bonuses".
If that $2.5millon AUD revenue milestone occurs for the 12 month period, you then have an additional business operational cost for their salaries: $360,000 USD x 2 salaries to pay - $720,000 USD or $960,000 AUD in salary just for these two guys.
So you pay $1million AUD in salary to them, another $300k nearly in bonuses out of your first $2.5 million in revenue.
If that doesn't ring sound business sense bells to anyone than I don't know what will.
All water under the bridge is this company strikes it big, but again - everythings about risk and probability. On the downside, if things don't work out, they're getting paid and looked after VERY WELL.
Pretty bloody good arrangements for themselves if you ask me. Probably back to John's cryptic tweet - which believe the conspiracy theories or not might actually make sense now. And hey, if asked about it, of course you wouldn't tell the truth - want to get sued for defamation or be that guy burning bridges?
Anyway just my 5 cents.
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