Money_Maker, yes YT (NetAssure) appears to be a expensive white elephant.
On the 10th December 2007, NTC announced exclusive rights to operate the Mako Networks system in Australia. Mako Networks is owned by Yellow Tuna Networks Limited.
The deal was worth around $3 million in cash and script.
The cash was $500,000 aussie and there would be two tranches of shares :
11,850,000 @ $0.10 = $1,185,000
8,245,833 @ $0.15 = $1,236,875
Total, All up a cool $2,921,875.00
The issue of the last tranch of shares was not approved by shareholders, so the distribution agreement was ammended on the 5th December 2008.
Instead of issuing 8,245,833 @ $0.15, NetComm paid $700,000 kiwi dollars (On NTC's Books as $596,087) and issued 3,831,667 shares @ 0.15.
So an ammended all up total of $1,096,087 in cash and $1,759,750 in shares. (Total $2,856,737)
Now the question is, what do NTC shareholders get in return for this "Investment", other than dilution of shareholder equity and Yellow Tuna selling down large trances of shares?
Mako, rebranded NetAssure by NetComm, is a managed broadband/vpn solution. You can read more at http://www.netassure.com.au/
I'm not sure how Sales are going. It's certainly not mentioned.
On the books, under Inventories it is mentioned. In 2009 there was "NetAssure inventories - conponents of $120,960" and Non-current "NetAssure Inventories - components of $3,211,604"
In 2008, the year of the aquistion it was $146,527 and $3,149,901 respectively.
To be fair, I don't believe they are selling the hardware. They are leasing the boxes as a recuring revenue model, so it would probably stay on the Inventories regardless of if it's sitting idle in NTC's warehouse or operational at a customers premises.
However, as it is a managed solution, the boxes talk back to equipment in a data center. This means NetAssure has a ongoing operational cost or data center space and server hardware.
Maybe if someone gets a hold of NTC management, they could ask for a sales update for NetAssure?
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