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01/04/18
07:40
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Originally posted by Winter08
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Not entirely where your coming from dJ but I’m well aware of the asx response and am pretty comfortable reading financial info. The 5.37% acceptance rate of all purchasing decisions is on page 38. As all purchasing decisions contain paid and non paid customers it would be good to know how much of the 791 acceptances relate to paying customers that will generate revenue through amortisation and how much relate to non paying customers that won’t have revenue. I have my own thoughts on that but with respect you can figure it out yourself too.i wasn’t really asking for assistance
Page 38 point 16-19
16.The Company is currently in the process of reconciling the total number of Accepted Customers with First Class which it expects to be approximately 791, subject to review and processing. If this is accurate, they would constitute 9.95% as a percentage of Paid Membership Customers and 5.37% as a percentage of Purchasing Decision Customers.
17. The Company has 7,955 Non-Paid Membership Customers. The Company is unable to confirm the breakdown between customers who were financed by First Class but did not accept their video (i.e. Declined Customers) and other customers who did not accept their video, and as such is unable to present the number of Declined Customers as a percentage of Paid Membership Customers and Purchasing Decision Customers.
18. However, as described in the Response Letter, these customers are still a valuable part of the Company's business, as they contribute to the video content on BIG's video review platform and build the depth and power of its content library, an inherently valuable asset in its own right for building Pillars 2 and 3 (as described in paragraphs 7(b) and (c) of the Response Letter).
19. For the quarter ending 31 December 2017 the Company had total cash receipts of $20,438,164 in relation to Paid Membership Customers comprising:
(a) Paid Customers – FC Sponsored = $18,084,000 subject to sponsorship arrangements with First Class who are Potential Customers. Cash receipts from Accepting Customers are not included in the cash receipts as their payments are either received directly by First Class or passed onto First Class; and
(b) Paid Customers – Non FC = $2,354,164 not subject to any sponsorship arrangements with First Class. This amount relates to 468 US customers who are part of two pilot sponsorship programs under testing for the US market.
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So for cash received for the quarter from FC for signed up customers, most contracts have not had enough time to convert to unconditionally paid customers, because of the generous nature of the contract that allows customers the right of refusal till after the video is produced. So the 791 is a gross understatement of the number of customers that will eventually go unconditional.
Sometimes I think posters purporting to be shareholders are subtly downramping.