simple clear no nonsense - What have BIG done wrong, page-77

Care to explain what part is no viable?

The business model? Why did almost all of 2016's clients renew their membership in 2017?

The financing model? It is worthwhile remembering that the $20m sponsorship pool is allocated for all sponsored contracts in the preliminary (but not approved stage), and reflects cash advances made to BIG under the financing agreement. This reflects 76% of the contract value, as per explanations given on p 4 and 17 of the query reply announcement.

In other words, there are $26m ($20m/0.76) of sponsored sales (not cash receipts) currently sitting in the preliminary stage, which is about 40% to half of CY17 cash receipts.

But more pertinent is the fact that almost all cash receipts in CY17 Q4 were sponsored, and utilised the capacity of the sponsorship pool. This implies that either all contracts in the previous three quarters were not sponsored, OR, they were sponsored and have been transitioned in to final acceptance and settlement in time to provide room for sponsoring in CY17 Q4. Either scenario is sustainable imo.