GREY:ATBPF - Post by User
Comment by
MrMugsyon May 24, 2021 11:16am
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Post# 33256891
RE:RE:Citagenix Inc
RE:RE:Citagenix IncGameChangerBet wrote: WalkOverTheStrt wrote: Anyone hear the latest on Citagenix Inc and whether they plan to still overload this cash drain (athough metrics has imprved lately)?
Their goal is to have it divested this year.
Agree - a good chance they divest in 2021 if market conditions are good enough to strike a deal.
Also, not sure how much of a "cash drain" Citagenix actually is. I haven't looked at the details but If Citagenix is asked to work within some tight spending restrictions, it wouldn't be much of a drain. For example, I assume all the R&D costs belong to ATE while all of the Selling/Marketing costs belong to CITA. Then it's a matter of how the G&A is actually broken up. If you assume a 90/10 split, (10% for CITA) there's no drain. If you assume an 85/15 split there's a small drain but depreciation and amortizations may take to almost a no drain. Once the G&A split gets to 80/20 (20% to CITA), then we can talk about some drain occurring).
Just not sure how much G&A is required for that small crew of resellers - just wondering.