Capital Raise?, page-58

I’m not so sure about the 2017 report. Back of envelope they’ve stating 22m cash receipts from customers and “other sources” on the SCF and that seems to be split at 13m revenue on the P&L and 9m as deferred revenue on BS. The 1.6m opening deferred revenue that gets amortised to revenue in 2017 year may account for some rounding to this but as it’s small it won’t alter materially.

I’ve heard different avg prices but 4K gets mentioned a lot. 22m would indicate 5500 customers accepted videos at 4K and at date of acceptance this would be getting amortised to revenue over 12 months. It seems very high for acceptances given now we know they came out and said only 791 customers have accepted.

Also I can’t figure out why the deferred revenue isn’t a larger component of the cash receipts given the cash receipts is such high growth. Every cash receipt would be hitting deferred revenue first and then gets amortised to revenue over 12 months. With such a high growth trajectory the cash is very recent so would expect more on balance sheet than on P&L.

Guess I’ll have to wait and see -hopefully asx and asic are going through this so we can get some confidence back and trust the reporting. I should be able to trust and believe reporting as fact and not have to question this