It is unlikely ICI will be able to pay the $750,000 so this will...

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Iamtruth

63 Posts.

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22/06/18

10:53

Post #: 33878607
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Originally posted by Creaturemagic ↑

At the end of Q1, March 31st, the company had $2.199 million in the bank.

The company expected expenditures to be around $3.086 million.

If we went with the conservative $60,000 a month that SensorTower claims (remembering their calculation is about as legitimate as mine), that's only $180,000 in the quarter. Whilst they have other apps making them money, I doubt AB1 would have taken the risk that they were unable to afford the $3.086 million in expenses. If CDH was performing badly, I imagine we would have seen a CR to get them through.

They have yet to receive the $750,000 from ICI and the Hong Kong grant is spread across 1 year of Dev and 2 years of upkeep, so it isn't a lump sum to save them. Therefore, it is probably reasonable to assume that they simply don't need the cash because the Crazy franchise is doing well.

I will be eagerly awaiting the Q2 report, as I am hoping for around $4 million in total revenues. However, even if it's less, I doubt it's "$60,000 a month for CDH" kind of less.

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It is unlikely ICI will be able to pay the $750,000 so this will probably be 'renegotiated' into a new add on to the Agreement. Quite shonky between these Asian controlled and 'managed' companies.

AB1 should just press on for the payment as cash is king and the existing agreement enables us to keep the money and sue for the balance or even keep the $250,00 already stumped up and keep the portfolio to be sold to ICI (unless that portfolio is such a lousy set that only stupid people would buy).

AB1 Price at posting: 4.8¢ Sentiment: Sell Disclosure: Held
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0 Great analysis

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