I agree an opportunity exists, especially when you're able to buy at a discount to the price over 75% of the shareholders paid for there's.
The A$1M net after tax profit for the year to 30th June 2016, is definitely eye catching as a 55.55M earnout target. As is the A$5M of revenue by the same date for another 69.4M share earnout.
Those are both very positive to me, the negative was reading the pro-forma balance sheet @ 31st December 2015, which I highlighted in a post on the other thread.
P15 of the revised prospectus (11th Jan) lists Intervison as having over 2,000 subscribers in Dec 2015, which is alarming given the July to October very positive growth followed by at best flat subscriber numbers.
P55, sales revenue of IOT in the 1st quarter to 30th Sept were just A$282,350, so they have a lot to do to reach the revenue earnout.
P61, pro forma balance sheet, Cash should have been A$7.38M instead its A$5.41M.
Inventory is A$250,000 more than expected, intangible assets/ goodwill is A$650,000 higher than expected. Trade & other payables are A$770,000 higher than expected.
However the other biggest chance is accumulated losses has gone from A$623,860 to A$2,059,455.
Clearly they've bought some other business (hence the increase in intangible assets/ goodwill), which may have had losses etc previously & would explain the drop in cash also.
A business update is clearly needed.
LOTM
AWO Price at posting:
2.6¢ Sentiment: None Disclosure: Held
