Tenet Fintech Group Inc. C.PKK

Cubeler contract on sedar

[lscfa]

At least going to Nasdaq is forcing these guys to full disclosure.

3.1 Royalties Fees. In consideration of the license granted under Section 2 of the Software and Royalty

License Agreement, Licensee shall pay to Licensor royalties (“Royalties”) in the amount of five percent (5%) of the first ten million dollars ($10,000,000.00) of Gross Revenues, three percent (3%) on the following fifteen million dollars ($15,000,000.00) of Gross Revenues, and two percent (2%) on all Gross Revenues after that.

[Nakate]

Thats a pretty rich payout, Looks like Cubeler got the sweet heart deal,  Hard to turn a profit when it is all given up for the rights to use. Gross revs dam Might end up having to dig in to the shareholders equity to cover that. Ya got to love these back foom deals that rear their ugly heads way after the fact. 

[Champ87]

Rumor has that they will buy Cubeler...problem solved if true.

[joystocks]

3.1 Royalties Fees. In consideration of the license granted under Section 2 above, Licensee shall pay to Licensor royalties (“Royalties”) in the amount of ten percent (10%) of the first ten million dollars ($10,000,000.00) of Gross Revenues, eight percent (8%) on the following fifteen million dollars ($15,000,000.00) of Gross Revenues, and five percent (5%) on all Gross Revenues after that

[Nakate]

So cubeler gets there money off the top before expenses and taxes there will not be much left for which to grow operations. The other question is who is cubeler. I don't like it its too rich for something that with out Peak is not likely going anywhere.

[lscfa]

The cubeler royalty is on the very high margin part of the business so expenses are minimal.    

[lscfa]

The gross margin on the revenues generated using Cubeler are like 90% and included in the 10% costs of revenues is Cubeler's 2%. Cubeler does not earn anything on the revenue from the bank subsidiary or the logistics JV other than the little bit of loan matching revenues they may generate. 

[lscfa]

  Platform ops 9 mo Revenue 2,130,883 Expenses 618,901 ebit 1,511,982     ebit/revenue 71.0%  

[lscfa]

The original contract was amended downwards. I posted the amended terms.    

[joystocks]

You are correct Iscfa, I missed the amended software agreement which had updated percentages.

[lscfa]

Very reasonable royalty. Peak makes 2% matching fee the on loan value. Cubeler takes 2% of Peaks 2% = 0.04% of loan value.   

[joystocks]

That's not that bad really as it's core to their lending hub and the cost of doing business! $100M in revenues would cost PKK $2.45M $200M in revenues would cost PKK $4.45M $300M in revenues would cost PKK $6.45M