Hi all,Based on my understand, the chair DW is more concern...

Hi all,

Based on my understand, the chair DW is more concern about the future cash burning rather than the value or potential profit in the AR sector. He said that its too early for a IT company or AR company to become public at its starting stage due to the uncertainty of revenue generate ability. And they are more worry about the future funding for the project and they believe its easier to get funding as a private company (AR tech). 

He mentioned that the company have been spend a lot of cash to the external contractors to build the platform which has not even been completed while it was under the previous director period.

The sale of sweep IP will bring the company $150,000 up front follow by the future payments if only it become successful commercialisation or capital raising activities (DW mentioned that the future payments from the existing contract could be considered as capital raising). To avoid further cash burning for the company is the only reason the chair said to sell the sweep IP. 

The meeting also mentioned that there's no valuation methods or market value have been used for the price setting. The settlement terms are all just based on the internal discussion within the management team.

In my personal view, all business will incur risk and cash burning. There's no business will generate income without any initial investment. We shouldn't give up a great potential project after all the spending and I don't think it will be easier to raise fund by a private company rather than a public company unless there were some deals already exist.