Why no downrampers on 3DP?, page-117

So I've been asking around to get others to find any weaknesses. Below is what some have come back with. I'm confident you guys will have a good response for these concerns and since we're having a pullback type of day, now seems to be a good time to post this (and buy the dip):

I've been looking at the 18/19 results and the 19/20 provisional results today. A few points;

* Nice revenue growth, lets see if they keep it up.

* No debt financing is kind of nice, but...

* They got about 1M cash-flow from issue of shares in both FY19 and 20. They will need more cash, so expect more dilution to come.

* Cost of services accounting looks kind of massaged, and related to that...

* 'Other Expenses' costs better have a f*ing amazing explanatory note in the final FY20 report given the size of the cost this year. The only explanation in the FY19 report was 'Sundry Expenses'.

* Subscription revenue is counted in advance and then offset in liabilities and worked off as the work is delivered. This both makes revenue look good very fast and inflates liabilities. It is not unheard of to do this, just of note. However, it also makes cost of delivering service look great so long as the company is growing, because all of the income appears at the start and all of the cost is incurred later.

* I would have liked to see directors buying shares between 18 and 19.

Conclusions:

* Full FY20 report will be illuminating, as well as Q1 21.

* This thing *could* start generating free cash flow if they keep up sales momentum. **If**. It seems this might be an inflection point but I attach a hefty risk factor to that call.

* Some yellow cards on governance.

One more thing, if someone could explain the 0.69M share based payment expense in the FY20 report to me (I know it is options rleated by not exactly where the cash is flowing) that would be great. It offends me considering the financial position of the company.


Another posted said the following:

- No first mover advantage, there are already companies doing an extremely similar thing.

- No moat, business model could easily be replicated.

- A -229.1% return on equity this year.

- Only increasing capital buy selling more shares, all capital is either share holder equity (73%) or long term debt (27%)

hopefully you guys can give a solid reply to this sooner than later and I hope you don't mind me playing devil's advocate. 3DP is 60% of my portfolio so I just want to have all the tees crossed and i's dotted before buying more.