I have been watching this thing for some years now and am baffled how anyone could be considering participating in a capital raise:
- their main pricing insights business has tiny, flat to declining revenues which are not enough to cover the costs of delivering them. They made $857k of revenue last year but have negative net assets of over $18 million!
- its "Other Income" from things like R&D tax credits is larger than its actual revenue
- lots of breathless announcements like the distribution agreement on WechatPay services or the one about a wine sales platform to China which haven't seemed to move the needle and aren't really mentioned again.
- They seem to have lost the $250k deposit for the aborted SunAsia acquisition and heaven knows what happened with the Sprooki acquisition
- zero cash holdings and month after month cash outflows which after having sold TillerStack they seem to be funding through continual borrowing from who the heck knows but include employees!
I'm watching this slow motion car crash just to see whether this is it flipping into the ditch, or being slammed into oncoming traffic for an even more spectacular flame out. You have to admire their tenacity for continuing to limp along without the creditors, regulators, auditors or exchange calling time.
IVO Price at posting:
25.0¢ Sentiment: Sell Disclosure: Not Held
