Post by
nozzpack on Jul 25, 2022 1:45pm
Kognitiv Valuation Timelines
Notes...Fair value usually determined by projecting 30 % revenue growth / year which is combined with
price to revenue multiple within the range 1.4 to 2.2 times
June 2020 ( all numbers in USD ).....
Acquired 48.6 % WI for $31 million
Fair value estimated to be 88.7 m , including $71.2 m in intangibles and good will
By Dec 30/20, Fair value had declined to $69 m.
2020 revenues = $53.1 m
Cost of sales = $73.6 m
Net Book value at Dec 30/20 = $94.3 million in assets and $84 million in liabilities for net book of $10.3 m
Dec 30/21
Revenue of $56.4 m , cost of sales $106.0 million
Carrying value of $47.3 m with a net book value of $3.2 mi ( $70.3 m in assets less $67.1 m in liabilities
March 30/22
$47.8 m injected into Kognitiv in January 2022 ( $10 m by AIM )
Carrying value estimated at $40.3 m at March 31/22 .
Q1/22 revenues of $14.1 m with operating costs of $25.7 m
No net asset value provided.....
Its clear from these statistics that Kognitiv revenue growth is nil and its operating costs to achieve those revenues, continue to rise to the point now that the net asset value is substantially negative that the projected carrying value is based on assumptions that are fatally flawed.
So, Q2 which reports in a few weeks will be an eye opener.
Comment by
nozzpack on Jul 26, 2022 6:29am
I did find the March 30/ 22 net asset value....... Assets...........$87.4 m Liabilities........$96.7 million Net asset value...negative $9.7 m. This, despite an injection of $48.5 m in January of 2022