A liitle while back when the shares were about 6.5c I posted something like the following.
"When the company did its back door listing the basic premise was that it had three sources of income.
1. Service fees earned by gathering IOT data which would be processed on behalf of clients who paid a service fee for the processing of useful information.
2. Some income from hosting/supporting Parse.
3. Very strong prospects arising from a deal/takeover of Noveda.
Of these, the most important was the first. The story was that Buddy was connected to Microsoft and was a strong entrant in the IOT data processing business, which was potentially a huge source of profits. After all, billions of things were connected to the internet.
Parse was much smaller but was potentially a useful source of income too.
A tie up with Noveda was going to yield "tens of millions" of income.
But looking at the latest half yearly we can see that expenses for the period were $9.5 million and income was $1.9 of which $115,000 was interest on what was in the bank. The loss was over $8 million which was higher than the loss for the corresponding period of the previous year.
Now that's significant. Buddy is an international company trying to sell products in the US, Canada, Australia, the Caribbean and the UK, yet a sales and marketing effort, which must cost millions of dollars, resulted in a total income from all sources of $1.8 million plus interest.
Now there's no guidance as to how that income was split up, but let's consider the figures. Just about everyone on this forum expects that that in the long term it will be the processing of IOT data that will yield the big bickies. That after all is the rationale behind Buddy. The sales of Ohm and LIFX products were simply a means to reaching that end.
As for LIFX, it remains to be seen whether it will show any synergies with Ohm. Nor is it clear that the Ohm business is generating any synergy with the IOT data business.
If the core IOT data business is not growing, (and on a total sales figure of $1.8 million for all of the company's businesses), it's hard to see how it can be, the business model has failed."
With the shares now at 1.8c, lets do another progress report, while bearing in mind that this was never meant to be a hardware company.
Parse? Failed.
Noveda? Failed.
Ohm? Failed.
LIFX? Failing.
Core IOT data business? Missing in action.
The price is terrible, but at least it's something. What is this company going to be worth in six months time, if it exists at all?
Disclosure: I'm a former shareholder who bailed out a while ago. I hope that those remaining get out while they can still get something.
Expand
