Seen some posts here using 337m shares on issue as a basis for their market cap calculation. It's worth keeping in mind, there's an extra 120m shares that's due to be issued from the chairman converting part of his loan into shares. So total shares on issued will rise from 337 = 337+ 120 = 457m shortly. Using 337m shares on issued understates the market cap by around $3m.
As for the quarterly, no big surprises there to me. The loss of jobkeeper is reflected in the lower operating cash surplus, but if customer numbers increase over the coming quarters, that should restore operating profit numbers closer to what they were in 2nd half of 2020. I did kind of expect cash receipts to be higher in the March quarter vs the previous quarter, instead of it going backwards, but I guess seasonal factors were at play, in that the Dec quarter got a boost from year end activities and parties.
I'll admit, having been keeping a close eye on Freak booking numbers, the drop off in bookings since the recent school holidays has been a bit bigger than I thought. Perhaps the pricing, at ~$100/hr per player is making it be seen as a luxury, rather than a regular activity to enjoy? It's caused me to rethink my initial assumptions that VR venues are on their way to being a mainstream entertainment product. Esp. with products like the Oculus Quest 2 priced quite competitively. It's not impossible, but I the challenges are probably larger than I thought. I'm still keen on VR as a whole, and keen to see where Freak ends up at.
Without any more news due in the near term I guess things will quieten down here over the next few months. Might be time to tuck away the shares in the bottom drawer and not look again until the second half of this year, when they're due to open the next venues for Freak.
IDZ Price at posting:
2.6¢ Sentiment: None Disclosure: Held
