The acquired AI division IS NOT trading at a loss. Why do you keep on saying these things?
It is trading IN SURPLUS. Read the announcement ffs!!!
The PIL ann states that revenue from the acquired AI division is $5.5 million per annum. It also states that operating costs will be $160k per month ($1.92 million p.a.). That means, on that basis, the AI division is operating in surplus by about $3.6 million p.a. That mean NO CASH BURN!!!
On the same day as the PIL ann, XPN, which sold the AI division to PIL, stated that the divestment will reduce both their revenue and expenses by about 15%. As their total revenue in FY23 was $15.07 million, it appears from their perspective PIL will be taking over about $2.26 million of that revenue.
What explains the difference between $5.5 million and $2.26 million is not clear. It could be the revenue that the AI division will earn providing inhouse services in connection to the PIL loan book.
PIL Price at posting:
2.1¢ Sentiment: None Disclosure: Held
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