Expense Management If below does not prove this company has...

Expense Management

If below does not prove this company has turned around and significantly refocused I don’t know what will convince some.

Employee benefits down while revenue per dollar spent up
Directors fees down
Professional fees down
Impaired revenue down
Days for collection of revenue down
Balance sheet clean

Employee benefits: Y on Y savings $1.7 milllion.
In 2015 for every dollar spent on employee benefits $1.78 of revenue would be generated, based on expenditure of 6,372k
In 2016 for every dollar spent on employee benefits $2.01 of revenue would be generated, based on 4,692k.

Directors Fees including :
2014: $558k
2015: $338k
2016: $250k
2017: I expect them to be down again to around $230k

In 2015 there was $1,001k spent on professional fees.
In 2016 there was $601k spent on professional fees.

Those saving comes in the form of the “transactions with directors” … 3 of 4 “transactions in 2015” were related to the previous Graham Baillie whose services are no longer employed by the company effective 16 November 2015, (does look like Baillie tried to juice the company 3 final times before pulling stumps).

Impaired Revenue has been improved
2015: $135k
2016: $109k

As has collection
2015 0-60 days: $1,008k
2016 0- 60 days: $715k

Conversely: Advertising and Marketing was $408k in 2015 and $537k in 2016.

Balance Sheet Impairment

Expect no more impairment. All the goodwill is gone as a result the balance sheet is very clean.
The only non-current assets relate to the Netsuite license agreement which actually has revenue attached to it

“The JCurve Business Software intangible asset balance relates to the recoverable amount of the amount paid for the purchase of the exclusive reseller agreement with NetSuite. This Agreement provides JCurve Solutions Limited with exclusive selling rights for the JCurve edition of the NetSuite business software for an indefinite period. The NetSuite agreement provides that in the event of cancellation of the Agreement, the customers of JCurve would be assigned to NetSuite and NetSuite would be required to pay JCurve a royalty of 30% of the future revenue stream to NetSuite for a 3-year period. On the basis of current trends, JCurve Business Software revenue is increasing year on year, and should this trend continue, it is unlikely that there will be impairment in future periods.”