Hi Alej,Welcome to the discussion, I'm wondering how you...

Hi Alej,

Welcome to the discussion, I'm wondering how you discovered VMT?

Good to hear you enquired about the source of the big jump in other income.

I'm thinking Accountants are trained in the proverbial Double Dutch. Their mantra seems to be "Put it in here take it out of there" but think carefully about where here and there are as there are several options.

Contributions from customers is an interesting clarification of other income.

If revenue doesn't stem from the sale of goods or services it is classified in accounts as other income. VMT have to date broken other income into several categories most of which describe without any doubt where the income came from.

If you look past the gibberish, accounting standards tell us "contributions from customers " are charges for the work that is a prerequisite of being able to provide a client a specific product. In VMT's case they would likely be the RandD and tooling costs that remain the property of VMT but are necessary to satisfy the needs of a particular client the likes of delivery and ride share companies like Greenmo and Loop Share.

These contributions have grown form $832K in 2019 to $1.5m in 2022 and $1.9m in the first half of 2023. They Jumped to $3.7m in H2 2023.

The reason for that would most likely stem from the Green Mo bad debt that was written off in 2022.

As we know VMT very astutely retained title to the bikes it delivered to Green Mo on credit until final payment was received.

When the liquidator sold the Assets of greenmo the bikes that hadn't been paid for were blistered with VMT charge.

The new owners got rid of the blister and gained ownership of the bikes it wanted to keep by paying VMT $750k. This may well have been booked to operating revenue with no cost of sales as that had been written off .

The new owners also returned 1100 bikes that they didn't have any immediate use for. The companies accountants, it seems, booked the estimated value of those bikes to contributions from customers on the one hand and an increase in inventory on the other side of the transaction.

We will have to wait to see if the auditors agree with the here and there elements of that.