Here is my summary of the just the financials.
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Posted On: 09/15/2018 12:37:04 AM
Here is my summary of the just the financials.
Sales looked a little light especially based upon all on the deals that were announced in Jan, Feb, March 2018.
A/R increased by $550K to $3.674MM but On4 actually collected a total of $656K during the quarter. This is $100K more than they had collected ALL the previous quarters combined.
Of the $656K collected, $575K was paid to Cogosense (so On4 is now a 30.8% equity owner). The balance is being paid to a third party contractor for purchase of the bSafe units plus other expenses.
SB did a much better job this past quarter of collecting his AR. Since there is no Allowance for Doubtful Accounts, he still assumes he is going to collect everything owed or have no returns which doesn't seem feasible for a company of this kind (and leaves the door open for possible big charge-off down the road).
Look like LAM notes has been paid off by On4 although unclear whether or not LAM has sold everything off into the market. I would guess it's pretty darn close to being down.
$60K of convertible notes remaining to other parties. Probably 30-40MM shares IF they get converted although I think some of the note holders might be owed more due to unrecorded interest expense.
Overall a pretty good quarter collection wise but have to be somewhat disappointed in sales given all the deals that were supposedly in the works. It appears the Middle East was a bust as no updates were given.
Separate from the financials are two very obvious things that DID NOT happen. There was no purchase of any factories or production lines to build product or rent out lines to others. It's probably a good thing this never happened. IMO , it was a pie in the sky dream of SB's that he quickly buried once he realized how costly it would be for him.
The Delaware debt did not get paid off either. Again the debt was not recorded on the financials as a liability when it clearly is one. Making an offer nine months after recognition that this debt was holding up the Colorado move is curious at best. Not disclosing what is owed or what the offer was is not reassuring to investors.
Look like SB has a lot on his plate with new stuff (cannabis, a new platform to freely trade) but it's also clear that some of the other stuff has either fallen by the wayside or is significantly delayed (golf apps, dental, NECA).
Sales looked a little light especially based upon all on the deals that were announced in Jan, Feb, March 2018.
A/R increased by $550K to $3.674MM but On4 actually collected a total of $656K during the quarter. This is $100K more than they had collected ALL the previous quarters combined.
Of the $656K collected, $575K was paid to Cogosense (so On4 is now a 30.8% equity owner). The balance is being paid to a third party contractor for purchase of the bSafe units plus other expenses.
SB did a much better job this past quarter of collecting his AR. Since there is no Allowance for Doubtful Accounts, he still assumes he is going to collect everything owed or have no returns which doesn't seem feasible for a company of this kind (and leaves the door open for possible big charge-off down the road).
Look like LAM notes has been paid off by On4 although unclear whether or not LAM has sold everything off into the market. I would guess it's pretty darn close to being down.
$60K of convertible notes remaining to other parties. Probably 30-40MM shares IF they get converted although I think some of the note holders might be owed more due to unrecorded interest expense.
Overall a pretty good quarter collection wise but have to be somewhat disappointed in sales given all the deals that were supposedly in the works. It appears the Middle East was a bust as no updates were given.
Separate from the financials are two very obvious things that DID NOT happen. There was no purchase of any factories or production lines to build product or rent out lines to others. It's probably a good thing this never happened. IMO , it was a pie in the sky dream of SB's that he quickly buried once he realized how costly it would be for him.
The Delaware debt did not get paid off either. Again the debt was not recorded on the financials as a liability when it clearly is one. Making an offer nine months after recognition that this debt was holding up the Colorado move is curious at best. Not disclosing what is owed or what the offer was is not reassuring to investors.
Look like SB has a lot on his plate with new stuff (cannabis, a new platform to freely trade) but it's also clear that some of the other stuff has either fallen by the wayside or is significantly delayed (golf apps, dental, NECA).
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