First Global Data Ltd FGBDF

RE:RE:NEWS

[Viosimiri]

Read again the news if you care to be properly informed about your investment.

Viosimiri wrote:

I personally don't see the 1 and 3 concerns affecting hte bottom line - yes needs to be fixed. item 2 different story:)
Company's auditor cited the following concerns:

1. the Agreements lacked clarity on whether the Company had relinquished control over the license issued thereunder post-sale;
2. significant payment had not yet been received as of the reporting period in question; and
3. the auditor felt that the costs related to the sale of an ISPL could not be determined reliably.

The below is not good

Company found that $2,722,162 in ISPL licensing sales for the year ended December 31, 2016 was incorrectly classified as revenue

The below looks pozitive if the company got the money but didn't categorized them right, or if they didn't got the money and needs to recover them

the Company's inability to recognize certain ISPL revenues, revenues in 2017 were significantly lower.The Company will determine whether it will be able to recognize revenues for licenses previously sold on a going-forward basis.  

I assume that we need to recognize the revenue and get the money back, and now all the fees taxes are paid already - so we payed more than we should?

Although the Company was unable to recognize revenues from the sale of ISPLs, all related fees, expenses, taxes and royalties paid related to the ISPL license program were nevertheless booked as expenses in the 2017 Financial Statements.
Company shall determine if it will be possible to recognize these revenues in the financial year ending December 31, 2018

The audits are done for getting better and looks like we are on the right path and as I mentioned earlier is better to have this before we get contacted again by TenCent.


Company is revising the ISPL licensing program and correcting deficiencies with input from its auditor and legal counsel, 


Company has taken the extra time necessary to better understand the situation, to make informed decisions, and to ensure that not only do its financial statements accurately reflect the adjustments required, but also that the same mistakes are not repeated. 

Will be nice to have the TenCent guys give us a handwith this matter looks liek we have bad luck in getting a good CFO.

interim CFO is no longer with the Company

We had some hick ups but I think was all for the best. Now we need Cali and Texas licences and move on. I am glad we are getting close to open the gates again