I found yesterday's discussion that some of you were having about "trials" stimulating and it caused me to do some thinking afterwards & made me go back over the September quarterly report & the half year report.
Hopefully some of you will go and review these documents as well, in fact I'd encourage you to do so.
I wanted to try & get to the bottom of who was actually paying for these extended trials, (Rightly or wrongly I'd previously taken the view that Syntonic was charging the sponsors for the data rewards - purely at the cost it was paying the Telco's for the data) as others clearly had different views as to who was paying going by yesterdays posts.
In the Sept quarterly report
Receipts from Customers was A$140,000
Research & Development costs were A$336,000
Advertising & Marketing A$131,000
Admin & Corporate costs A$201,000
Staff Costs A$348,000
Interestingly though in the half year report we see the following figures from P6.
Sales Revenue A$106,020
Service Revenue A$26,723
Research & Development costs were A$575,621
Marketing expenses A$309,980
Other operating expenses A$581,466
Staff Costs A$582,954
I also wanted to include the following figures from P7.
Trade & other receivables A$105,600 [ A$0 at 30th June]
Other current assets A$49,735 [A$15,615 at 30th June]
Current liabilities
Trade & other payables A$928,642 [A$683,867 at 30th June]
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So even although our reported receipts from customers in Q2 was that underwhelming A$18,000, there was actually more revenue than that generated by the company, its just that its not been received yet.
So in the half year revenue generated was in actual fact, A$106,020 + A$26,723 + the outstanding A$105,600 = A$238,343 rather than the A$158,000 everyone thinks the company generated.
The same issue will probably apply this quarter & future quarters, where there is a delay in the revenue appearing on the books so to speak. I hope the company finds a way to express this, so that investors can see the additional revenue that will be coming in, but not for another 30, 60 or 90 days due to the contractual set-up with Telco's & Sponsors.
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I was going to be writing more but it will have to wait for another day ........................
LOTM
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