Ann: FY24 Results Announcement, page-9

Intangibles:

It's a software development expense, but they're also recording the value of the work in progress as an investment, so giving it an asset value as they expect to gain value out of it (reduced risks, or gaining revenue etc).

It would be written off if it goes unused, like the crypto did.



There's $2.8m investment into intangibles vs $2.6m from operations.




If you look at the notes to the balance sheet, you'll see intangibles rise by just $1m. That's because: they wrote off crypto intangibles in that period (expecting to never use that website/app work), but then did $2.8m of new work (security, cloud, and potentially something else).



So all of the profit was spent instead of dividends etc. So they don't consider it an expense of upkeeping the business, but an investment into improving the business. I guess they considered this investment necessary.

$2.8m sounds like a lot for security/cloud. I'd hope there's also some new features in development, with revenue potential.


NPAT: $3.4m
Cashflow from Operations: $2.6m
Cashflow: -$1m (after investment into intangibles and buy-back)
Might NPAT be higher than Cashflow because of using up Tax Credits from Historical Losses? $850k tax not having to be paid. (Note 6. Income tax expense)