I'd say to "manipulate", or to use a lighter term, to "manage" market expectations. The issue is by the current reporting standard, they dont have to report quarterly revenue figure, only the cashflow figure, hence the name of the 4C report. Hence they are free to put in different types of visuals that fit their agenda.
From Q4 4C, they disclosed recurring revenue and cash receipts.
This quarterly 4C, they show recurring revenue and non-recurring revenue.
From investor presentation, they have had one-off revenue ever since FY19 (not sure about Fy16 - Fy18 because it is not clear on the graphic), I doubt they did not have any one-off in FY21.
Now, those beg some questions:
Q1. Assuming they did not record the $226k in FY21, meaning Q1FY21 number would be close to $400k, which is pretty decent. Why don't they show that in graph #1 and #2? $400k to $430k is a decent growth %, and look consistent as well.
Q2. If there was no non-recurring revenue in Q2, Q3, Q4 of FY21, why don't they just call it revenue?
Q3. From an accounting perspective, "cost of sales" cannot exist by itself, there must be a revenue line associated with it.
Anyway, like you said, they should be upfront and clear about their reports. But judging from what I have seen so far, my guess is Justin and friends who have a stake in this business, saw their shareholding value went down the cliff, now trying to save the stock because think about it, if he blows this one up, his reputation in the industry is done.
OR
They are a bunch of smart asses, who on purpose pushed the price down so their friends and associates can get in at 15 cents per share via a placement and benefit from the a big corporate takeover that they are gonna annouce down the line. If that's the case, hats off to them.
I think it's 99.99% scenario 1.
Add to My Watchlist
What is My Watchlist?
