RE:RE:RE:RE:RE:RE:RE:RE:What a earnings reportTrader124 wrote:
over 5 millions in expenses on what? They said for years they have good pipe of candidates and that justify the expenses. Its been a while they didn't do a royalty deal. So basically they are spending that much and there almost no deal can you imagine if they start to travel and pay lawyer and accountant if they want to start to do deals...
If you actually want to know about the expenses, read Note 20 of the Q3 financials. Expenses are broken down into the two business segments --- Growth Capital (i.e Grenville) and Global Partners (i.e. remaining Logiq business). They pay themselves well and definitely need more scale in the business, but it's not as bad as it looks once you back out one-time charges and $400k of amortization in the Global Partners biz.
A couple thoughts as the shares sit near $0.13...
- I was pleasantly surprised at their recovery from the Medical Imaging investment. Obviously still a terrible investment, but I wasn't expecting any recovery at all.
- Revenues at Factor75, Stability Health and Dionymed have been growing nicely. Factor75 and Dionymed seem to be paying at a rate above the 25%/year minimum. Mera, InteriorMark, TruGolf, Hybrid, and Connectandsell all continue to pay at around 25% / year.
- Dionymed completed their private placement, raising approx $35M at $4.25 per share. In April they were considering a $15M raise, but I think they ended up making a couple bigger acquisitions once they found that capital was available. Looks from their website like they've bought Rise Logistics and Winberry Farms. They'll start trading on the CSE soon after a reverse merger. If their revenues scale even close to as quickly as they intend, then we'll see a buyout here in the near term. Flow also owns 190,000 warrants at a $1.50 strike (I think).
- They repurchased approx 360k shares at just under $0.17 in Q3. Wonder if they've been picking up more through Q4.
- Two of their bigger investments, Solar Brokers and Expert Homes, are having cash flow trouble and aren't currently paying any royalties. Solar Brokers is a particular concern as it's a recent investment.
- The Agnity deal has not been consummated. I don't know what the hell Mcloud is doing. The whole business model looks like an unfocused roll-up. They keep making deals before having the cash to pay. They just did a PP but I think the proceeds are going to something else before the Agnity deals. Who knows if/when this actually gets done. In the meantime, Agnity continues to pay a royalty at a lower rate.