If this is what Vlad told you, IMO it was misleading and unethical.
How can he say the assumptions were conservative? Let’s revisit the key facts related to the Indian deal:
- The partnership was to commence subject to the Indian partner funding the company;
- They predicted $31.5 million in revenue payable by the Indian partner between FY19 and FY23;
- Funding was never completed;
- The partnership never commenced.
Other facts to consider is that the Indian partner has an app with very negative reviews. Based on this it is reasonable to assume revenue is only small. Myfiziq has/had an app that never generated any revenue from subscribers.
Now, how can Vlad confirm these forecasts were conservative, when the partnership had not even been funded and commenced? This goes completely against ASICs’ guidance on forecasts.
(20min delay)