I'd like to engage in an investors discussion abou
Post# of 17653
Posted On: 02/06/2015 11:04:43 AM
I'd like to engage in an investors discussion about DUTV's financial viability.
How is Net Gain impacted if (all or the majority of) the $3,170,105 in Accounts Receivables from the last financials aren't able to be collected?
My main concern regarding DUTV's viability is in the $3,442,560 of Accounts Payable, plus the $881,549 in Accrued Interest plus the additional $1,402,168 in Notes Payable that DUTV is responsible to pay according to the financial statement. That's a total of $5,725,277.
My first observation is that the last financial report has DUTV at a net loss on paper. And that's even if DUTV collected every penny of the Accounts receivable it shows it was due.
So lets consider that Virtutone was "one" of DUTV clients as mentioned here previously. And for scenario sake lets say that DUTV provided $1,100,000 in services that Virtutone is now unable to pay due to Virtutone's recent Bankruptcy filing.
That put's DUTV that much further behind in it's own ability to catch up on the $5,726,277 it owes its own vendors, service providers, lessors, etc.
Add to that the potential that DUTV may be unable to collect fully from other clients on the remaining balances in their accounts receivables and you have a recipe for an insolvent company that can not pay its own debt.
Net Gain goes out the door by definition if DUTV can't do 2 specific things in the near or immediate future:
1) Generate positive cashflow that reflects revenue totals greater than total of current and outstanding expenses and accounts payable.
2) Drastically improve the ratio of Collected Revenue to Accounts Receivable. In other words get more of the money owed them so it can be working capital instead of leaving it with the client where it potentially remains unpaid.
Investors will have to wait for the next financial to find out just how DUT is dealing with those receivable balances.
In the mean time the majority of investors and potential investors are left in a guessing game with some unfavorable looking "NET LOSS" figures showing. Add to that the disappointing news about Virtutone and the unknown impact it may have to DUTV and you have valid reasons for concern.
Anyone care to contribute to the discussion?
How is Net Gain impacted if (all or the majority of) the $3,170,105 in Accounts Receivables from the last financials aren't able to be collected?
My main concern regarding DUTV's viability is in the $3,442,560 of Accounts Payable, plus the $881,549 in Accrued Interest plus the additional $1,402,168 in Notes Payable that DUTV is responsible to pay according to the financial statement. That's a total of $5,725,277.
My first observation is that the last financial report has DUTV at a net loss on paper. And that's even if DUTV collected every penny of the Accounts receivable it shows it was due.
So lets consider that Virtutone was "one" of DUTV clients as mentioned here previously. And for scenario sake lets say that DUTV provided $1,100,000 in services that Virtutone is now unable to pay due to Virtutone's recent Bankruptcy filing.
That put's DUTV that much further behind in it's own ability to catch up on the $5,726,277 it owes its own vendors, service providers, lessors, etc.
Add to that the potential that DUTV may be unable to collect fully from other clients on the remaining balances in their accounts receivables and you have a recipe for an insolvent company that can not pay its own debt.
Net Gain goes out the door by definition if DUTV can't do 2 specific things in the near or immediate future:
1) Generate positive cashflow that reflects revenue totals greater than total of current and outstanding expenses and accounts payable.
2) Drastically improve the ratio of Collected Revenue to Accounts Receivable. In other words get more of the money owed them so it can be working capital instead of leaving it with the client where it potentially remains unpaid.
Investors will have to wait for the next financial to find out just how DUT is dealing with those receivable balances.
In the mean time the majority of investors and potential investors are left in a guessing game with some unfavorable looking "NET LOSS" figures showing. Add to that the disappointing news about Virtutone and the unknown impact it may have to DUTV and you have valid reasons for concern.
Anyone care to contribute to the discussion?
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