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URBAN COMMUNICATIONS INC V.UBN

"Urban Communications Inc is a telecommunication company. It develops and operates telecommunications networks in urban areas and provides a full suite of Internet, voice, video and broadband application products."


TSXV:UBN - Post by User

Comment by LauraDoveron Sep 07, 2016 1:43pm
62 Views
Post# 25214546

RE:Huge increase in revenue, same debt?

RE:Huge increase in revenue, same debt?This is from the MD&A on Sedar:  For the three months ended June 30 2016,  sales were up from 197,676 to 397,465. i.e. about double or $200,000.  (due to 1Gb  service, as well as a license for wholesale ISP that they purchsed).

However sales/marketing/operating costs were up $96,000 (increased advertising/sales/operating costs) and general/admin expenses were up about $158,000 (higher share-based payments, more interest, one bad debt from a former customer, higher depreciation due to spending on construction.)  Hence the bigger loss.

In the Risks section (Scarcity of Capital):  "The Company's publicly traded securities have reflected its operating at a loss, while at the same time not reflected its inherent asset value."    
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