Its Over, page-378

LVT's diving share price underscores something untoward. Today its sp fell almost 16% to 34.5c.

In my earlier post, I expressed ambiguity about the way they have been reporting their ARR (Annualised Recurring Revenue).

There seems to be a few disconnect. Firstly, ARR is expressed as committed recurring revenue on an annualised basis, but committed does not equate to contracted. All you need to do is to work out the ARR each month and divide by 12 to provide the expected monthly revenue and add them up to equate to what you would expect for a 12 months revenue. I did this and it should have been about $8m revenue for 12 months to June 2018. But the 12 months revenue was just $5.69m so obviously there have been churn along the way.

	Column 1	Column 2	Column 3	Column 4
0	LVT	2018	2017	2016
1	Shares issued	551.572	451.249	378.383
2	Stock price	$ 0.345	$ 0.425	$ 0.12
3	Market cap	$ 190.29	$ 191.78	$ 45.41
4	Annual Revenues	$ 5.69	$ 1.77	$ 0.65
5	Profit/(Loss)	-$ 22.06	-$ 7.40	-$ 13.22
6	Share based Expenses(SBE)	-$ 0.97	-$ 0.89	-$ 4.37
7	Market cap/Revenue (x times)	33.47	108.41	69.96
8	SBE as % of Profit/(Loss)	4.4%	12.0%	33.0%

Secondly, the amount of cash receipts per quarter was just $2.4m which equates to about $800k per month. Yet ARR between June and Sept 18 was between $15-18m which should suggest at least $1.25m per month.
Thirdly, if growth was as spectacular as suggested by ARR, why does the company need to raise $25m which is excessive. Well, the reason is largely due to the very high cash burn rate and IMO an actual business growth that is less than what it appears.

These disconnect continue to manifest in the increasing losses.

I would have thought that given the scandalous revenue reporting by BIG which was fraudulent, ASX should now require a standard set of revenue reporting construct.