Pounce Technologies Inc. V.POI.H

RE:RE:RE:RE:an email from Slyce' management

[lscfa]

You are also missing that SLC is looking to increase monthly fees received from customers by 5x.....


Revenue Model  –  Monthly  Recurring Revenue  Upsell plus Usage  Fees Slyce  looks to  monthly  licence  fees as its primary  revenue  line  with  the  level  of  fees to  be  determined  by the  range  of services  taken,  the  base  volume  levels  and  the  size/complexity  of  integrating  and  maintaining the  client’s  image  inventory.  Base  monthly  starting levels  are  expected  to  be  in the  $10-15K  range. As noted  with  its  JCPenney  contract,  Slyce  looks  to sign  three-year  term  contracts  with  fees  renegotiable annually.  In addition to  basic  licencing,  Slyce  offers  supplementary services  such as  couponing,  consumer data analytics,  and  customized  client  services.  By adding  these  supplementary services,  Slyce  looks  to increase monthly  recurring  fees  toward  $50-100K  (and beyond,  as  noted).  Moreover,  Slyce receives ongoing image  ingestion fees  for  $0.50  per  image  and  picture  search fees  for  $0.07 per  picture  as  users take more pictures.  On  this  basis,  Slyce  looks  for  usage  based  fees  to add  20-25%  to the  monthly subscription fees  once  a  contract  achieves  a  level  of  maturity.  For  our  modelling  purposes,  we  based  the usage fees  on  a  percentage  of  recurring  revenues  lest  we get  lost  in  the potential  complexity  of forecasting  usage  volumes.  Please  note  that  in  our  forecasts,  average  monthly  revenues  per  contract  and the  additional  fees  as  a  percentage  of  the  contract  levels  are  held back  by the  rapid growth adding relatively  low  revenue  clients  before  their  usage  builds. 

https://dqkjwx3xr6pzf.cloudfront.net/c106630/Slyce_Initiation_09242015v2.pdf
Read more at https://www.stockhouse.com/companies/bullboard/bullboard/v.slc/slyce-inc#hw86pGCUWHVKYEh6.99

Leafs4Life wrote: You're right, 6 months was hyperbolic and probably innacurate. But we can do some math to speculate why Chell says Slyce has "financing requirements." 

If five customers in the last public quarter equals approximately $435k in revenue that means 11 customers (your number for this quarter) will deliver around a million in revenue (assuming similar rates and zero customer attrition). Their cost of doing business was 3.6 million last quarter and they had 6.1 million in cash on hand.  Their cash number could dip under 4 million when they report next.   
This is why Chell was talking about "financing requirements" and "raising as much money as possible." The problem is they already did a private placement not too long ago in the .40s and now the stock is at .21 cents and those bankers are holding the bag.

Remember, I'm not the one who said they would need money, Chell did in that email.  All I'm saying is it will be hard to raise money because of the recent private placement, and as a result the terms of then next deal won't be good.   

This is an investment board. I think there will be a good time to buy this stock but it isn't until we see what these financing requirements actually are.