lot's of talk of Freshii IPO, lately.....hmmm
Ackroo made two acquisitions during the quarter: OnTab and D1Mobile. The latter should contribute positively to revenue and gross profits beginning in Q2 2016. Since our initial report, additional details have been disclosed regarding the D1Mobile acquisition. Royalty Bonus: The seller can earn 40% in cash performance bonus on annual recurring revenue exceeding $50,000, plus any amount paid for consulting services from 4 strategic clients over a period of two years. One of them is a very large account that D1Mobile provided mobile consulting services to, but they did not have on their Appetite platform. Additional Bonus: Freshii and Yogen Fruz were on old and independent platforms of D1Mobile that now belong to Ackroo. An additional bonus was put in place in case Ackroo decides to sell these platforms to these two customers within the first 60 days. Management has assured us it wont happen. In Q1 2016, the company completed the bulk of the migration of their old DealerCard platform to the Ackroo Anywhere (AKR3) platform. The DealerCard platform migration is a critical advancement for the company as it shows their ability to acquire technologies and integrate them into their operations. They can now focus on migrating Dealer Rewards Canada (DRC) customers to AKR3 in order to remove the 40% licensing fee they have to pay on monthly recurring revenue to use the vendor's platform. We are talking about a $290,000 annual opportunity at current DRC revenue run-rate.