Superb analysis of YPB. Thanks Talkalot - you obviously spent a...

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Mayi

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183

06/06/23

13:44

Post #: 68154134
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Originally posted by talkalot: ↑

YPB's rhetoric doesn't match what our eyes tell us about the performance of YPB. You only need to refer to Page 6 of the AGM presentation where YPB claims they "have loyal customers with recurring revenues, despite covid"(it's not what I see!!!!!). Another claim is how they brag about about cutting costs in recent years. JH, as well as the KMP have done well with their salary, perks and performance rights whilst as noted by MAYI, "shareholders have been stripped of their cash". In the YPB 2022 Annual Report, JH comments that none of the KMP achieved their KPIs but still get so generously paid.

2022 2021 2020 2019 2018 2017 2016

JH REMUNERATION 469 435 479 527 303 328 328

KMP REMUNERATION 1016 1060 1060 1212 1354 1437 N/A

SALES/REVENUE 555 663 616 1119 1987 1998 2982

From YPB Annual Reports, years are calendar years and numbers are AUD 000.
KMP means Key Management Personnel, including executive and non-executive
directors and CFO, COO.

YPB's last 3 quarter results were less than $100k per quarter once you take away the $250k windfall from their successful court settlement in March 2023 quarter. There is a good chance that June quarter 2023 will also have revenues of less than $100k. If so, it will mean that the trading results for the 12 months ending June 2023 will come in at less that JH's remuneration package of $469k.

Over-hyping and overstatement abounds a plenty in the AGM presentation and I will make only one observation as this typically represents the use of irrelevant large numbers to portray a picture that is wildly optimistic. Referring to page 6 of the presentation, there is a global map-on my count it suggests that YPB has 52 clients, strategic partners, and distributors world-wide, including the likes of Samsung, Apple etc. They claim to have issued 278 million serialised protected codes, over a billion of their tracers to packaging. Further, YPB says they get between 1.0c and 2.0c for each code or tracer, so my question is why does this not show up in their revenue. 278 million codes which have been issued at 1.0c each represents $2.78m in annual recurring revenue. And the billion tracers applied that would be worth $10m. My question to YPB is "please explain why this is not so".

YPB is not a new start-up company having gone public and listing on the ASX in early 2015, so after 8 years and "burning" of over $80m of issued capital, with the last 3 years being their worst ever for sales revenue.

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Superb analysis of YPB.

Thanks Talkalot - you obviously spent a quite bit of time going back through the history putting these numbers together.

For me the most telling facts are:
1. Revenue is less than a fifth of what it was 7 years ago.
2. 52 clients means that the average revenue per client is 1.5k per quarter. Samsung and Apple are obviously not paying out the big bucks to YPB.
3. The largest cost is not cost of sales - it's paying management

YPB Price at posting: 0.2¢ Sentiment: Sell Disclosure: Not Held
5 Upvote

1 Great analysis

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