LIFX Review, page-15

Digging into the annals of the Annual Report, I came across this doozy:

The assumptions used are manifestly negligent.

How can you expect to increase revenue by 70% when you can't manufacture enough products to match 2021 production?

How is BUD's weighted cost of capital produce a discount rate of 27% when you have to pay more than 50% in upfront fees to borrow capital, on top of 12.5% annual interest? Borrowing costs alone are more than 27%!! And they cannot raise equity anymore, they just tried that.

Does the chip shortage give credibility to just 3% inflationary increases?

And then there's the sentence I've highlighted. If revenue increases by 35% in 2022 (which is very questionable) the writedown becomes $48.2m. Guess what the full value of intangibles is? That's right, $48.2m. So, unless the revenue growth is greater than 35%, LIFX is worthless!!!

In reality (using adequate assumptions), this revenue hurdle is much higher.