GREY:SNIOF - Post by User
Post by
Polebrookon Oct 28, 2015 4:50pm
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Post# 24236391
Note 4 of the financials is worthy of note
Note 4 of the financials is worthy of noteDuring the quarter, renewals/content deals with the studios cost $287,394 whilst $22,742 of the 3DGo rental income was expensed against advances prepaid to the studios for the 3D movies that were rented. This means that of the $31,814 of 3DGo income, $22,742 was the studios' share. So about 28.5% ($9K) of the 3DGo rental income comes back to Sensio as gross profit. Put another way, they would need around $2.2m of 3DGo rental revenue each quarter to cover $630K in operating expenses. Right now 3DGo covers just over one day per quarter of expense. And I stand corrected, due to the content rights paid to the studios in the quarter, cash and receivables is down to $741k, lower than my prior estimate.