Ann: Preliminary Final Report, page-19

It is clear now, that the prelim report has not damaged the SP.

If I try to do an Enterprise Value (market cap + debt - cash and equivalents), and divide that by the SOI, then I get a value of 6c per share. I am wondering if that could be the reason that the SP has not tanked. I am unsure about my thinking here, since adding on debt increases the EV, and therefore the value per share. I understand the formula requires it, and it makes sense to me for a stock that is profitable (when debt is cheaper than equity). Not the case here.
Someone with good knowledge is required here.

Page 5 of the report is in my opinion a good statement of how the business model performs on a cash flow basis (i.e. "unencumbered" by accountancy considerations):

• receipts from customers went up by 37% yoy to $92.2m
• payments to suppliers and employees went up by 35% yoy to $94.2m

= economics of scale not kicking in.

adding in interest paid, the net loss from operating activities went up by 56% yoy to $3.856 (from $2.446m)

I think page 5 is a good descriptor of how the business works as such, since there are no write down, value adjustments, non-cash items etc involved. It therefore gives an insight of how the money was flowing yoy, and what the management had to work with.

Replies and insights are welcome, and I stand to be corrected. Cheers