Ann: IOUpay Acquires 42% of I-Destinasi Malaysian Finance Company, page-383

It's an active minority stake of 42% which falls under the equity accounting method. Profits will be recognized on the balance sheet but income will only be recorded up to the amount paid out in dividends. For IOU to record $4m as income that would mean that 100% of profits are paid out as dividends which wouldn't be the case. I've never seen any company pay out 100% of profit as dividends, regardless of the size of the company.

https://www.investopedia.com/terms/e/equitymethod.asp

Don't forget that the founders would be paying themselves a salary as well. Dividends are a bonus, profits can be retained and reinvested into infrastructure and used for growth which is why I have never seen a company pay a 100% dividend.

I would argue the reason IOU have negotiated the reduced cost based on under performance is because of the loan moratorium which doesn't end until July 2022. This may impact the bottom line for IDSB in that part of their revenue would be from new loans. The number of new loans may have decreased because of the increased impairment risks now present in the MY economy causing banks to possibly reject some new loans. Which could be another reason why the founders have taken on a reliable minority investor in IOU.

Back to my original point, when there is uncertainty over the business environment it's prudent to retain profits for future sustainability risks. Given that IDSB are experts in this area and have been in the game since the 80's and successfully navigated the Asian Financial crisis in 1998, I believe this would be very likely and given that it's an investment for IOU, I see no reason why IOU would try and force a large dividend payment.

This is my opinion of course and not fact but I'm hoping you can see my reasoning for using such certainty in stating that IOU don't get $4m to do with as they please.