Thanks for clarifying T.Rat. I skim read the q&a and that was my take away re the UK. If PD is still very much on the proverbial table then i can see any such contract putting a rocket behind the SP
I personally see the CR agreement (in progress, MOU at present) as a pretty good sign that sales are due in 2022. DVRG wouldnt bother striking such relationships if they weren't and, more to the point, a massive company like CR wouldn't bother engaging with an as current micro company from the UK if they didn't see sales being generated.
The awards that are being won in China goes to show that the tech and the company are on the right path.
A lot of PI focus is on the UK. This would probably be the type of deal that would put a rocket up the SP, but GB has moved to confirm that the UK isnt a market they are moving for at this time (yesterday's Q&A). But lets be realistic, the UK is a minnow in comparison to the rest of the world. Even if we only found success in China that would see the MCAP explode as ultimately the profit and loss account would shine through even if the sentiment of success in China didn't.
The value of the STC data is being massively overlooked. In the next 12 months or so the UK, US and China will be paying DVRG to give them their data. The said data, over time, will be worth many many millions, if not billions.
PD, BT, STC, labskin. All irons in the fire among many more. There is too much focus on the here and now. I would be amazed if we are at 26p SP in a years time
Patience is needed. The regulars on this BB clearly have it. The new faces that showed up pre interims are clearly traders looking for a short term bounce. Both acceptable to me, but the true value in DVRG will become apparent over the next year or two. Certainly worth hanging around for :-)
In the absence of the full financial report i cannot comment on the intangible asset recognition policy, but it is likely to be historic cost less accumulated amortisation. As a result, the book value of the intangibles would fall over time (like with tangible fixed assets) as and when amortised. Intangibles would be considered for impairment (value worth less than book value) but they are not likely to revalue them upwards. If they did i would expect to see a fair value adjustment in income statement or revaluation reserve (in equity).
MW was acquired outright. I would imagine a full consolidation of its balance sheet took place which resulted in the intangibles in existence on the MW balance sheet being merged with those of integumen to generate the consolidated balance sheet we have in these interims.
The consolidated financial statements will excluse any intercompany relationships and therefore the balance sheet in the interims wont include loads of fudge re MW acquisition. It will include acquired intangibles.
Its been years since i studied merger accounting, but as with all financial statements, they are not supposed to deceive. They are required to give a true and fair view. Deception comes from the interpretation of said financial statements
Muggins - you do raise some interesting points but i disagree that the intangibles are worth next to nothing. I would imagine that the intangibles includes items such as patents and trademarks. These are intangible as they do not have a tangible existence. However, they are still of value, both to the business in operation and to someone wishing to buy such patents and trademarks.
Internally generated intangibles such as goodwill etc would have little value to a third party, but i doubt that the accounts contains much of that.
All accounts are prepared on a going concern basis, unless on the break up basis (imminent liquidation). I believe you have confused this with a going concern accounting policy whereby there may be concerns over the company's ability to continue as a going concern. That is one for the external accountants and auditors and would only be a factor in the annual accounts. There are no such references in these interims
The business has also grown by £21m in net asset/equity value (from £4m to £25m) in 12 months. That is impressive.
Simply put, the balance sheet value of the company is what it is worth if the company was liquidated today. Its assets exceeds its liabilities by £25m. Businesses are never sold using balance sheet value as it only takes into consideration historical performance/position.
We have a mcap of £60m, which means that the potential of the business is "only" valued at £35m.
Regarding cash burn, £3m or so related to operating activities.
£1m went into paying off debt (about £1.2m left on BS as at 30/6) and £832k went into fixed assets (gearing up for CR?)
Cash burn from operating activities (£3,136k) is less than turnover generated in the period (£3,319k). Naturally some cash flow is tied up in trade debtors etc.
The cash burn isnt as alarming as first made out
The increase in cost is in part due to the increased staff levels. The increased staff levels are so that DVRG can meet the demand for its products as and when required.
The CR JV/agreement is expected to conclude in Q4 and if and when that is signed off CR will be ready to go (they are massive). Equally, DVRG need to be too. This may be part of the due dilligence for CR into DVRG, that we actually have the ability to meet the demand. 58 staff, or whatever it is, shows we mean business.
We need the team assembled and raring to go as CR wont want to wait 6-12 months for DVRG to get the team in place post contract signing
I believe manufacture would take place in China with assembly in Ireland. If CR start manufacturing 200 units a month, we need the assembly team in place, and adequately trained, to match the assembly rate. If DVRG cant then it doesn't matter how many units can be manufactured in China if DVRG only have two guys assembling them in Ireland.
For me, it makes perfect sense to assemble the assembly team ahead of contract sign off. If anything, it goes to show that GB is confident that it will be signed
All imo, of course
As far as i am aware blood tests need to be carried out in hospitals and they also take time for results to be received. Such a "one size fits all" blood test would surely take longer to analyse, and would probably require more of a doctors time to interpret.
Microtox BT is a point of use GP surgery device. It will provide (close to) instantaneous results.
If anything, the blood test might be something that is carried out once the BT has provised its verdict.
All imo, but i dont think that the blood test necessarily replaces/gets in the way of BT
As i understand the merchant arm is:
- amongst the cheapest, if not the cheapest, merchant service available (0.5% per transaction)
- will utilise open banking and thus be one of the quickest, it not the quickest, payment options for consumers
- offers BTC rewards which are likely to be more appealing to younger demographics than website/store loyalty points
The above three points seem to suggest that MODE offers a win win proposition for all involved, plus looks to be one of the best, if not the best, in class.
Please feel free to correct me if i am wrong with any of the above.
There was a time, in the not too distant past, where the build up to, and aftermath of, a CF presentation would lead to a boost in the share price. I wonder what we will see this time? I for one still have faith in ORPH the business, but recent events (mostly share price related) appear to have changed some minds about CF the leader. Hopefully he is on song tonight and we can start to reverse this recent trend of SP regression.
Link to the MODGF stocktwits board:
49 watching (up from 40 over the weekend) and posts starting to pick up.
By comparison ARBKF has about 18k watchers...
But ARBKF had 0 watchers once, just as we did.
It will be interesting to see what affect, if any, the live listing has come 2pm
I dont think we want an ARB style rise here. Dont get me wrong, as an investor i would take it, but what happened to ARB was not sustainable, the price crashed back down to earth and has left a lot of investors under water. The ARB board is full of arguements and disagreements these days whereas it used to be a small crowd of loyal "argonauts" as they refered to themselves as.
I hope those early adopters sold out at £3.20 the february high, from the lows of around 7p! Anyone holding ARB right now is hoping for gargantuan rises. With a mcap of £500m and BTC all over the place (albeit rising now) i cant see it.
With a market cap of £45m MODE offers massive upside potential. If we see an astronomical rise then so be it, but i would prefer something more sustainable that doesnt attract the vile side of the investing community in its wake
We are in MODE at the right time imo. If we do see a massive rise then we will be the winners. Take note of the names of the contributors at these low levels. They will be the real winners over the next couple of years, not those who arrive with the herd, whenever that will be.
Good luck all holders
I wouldn't say ARB was necessarily known about. Its trade was easily relateable to other miners, mostly in canada. The pink sheets listing highlighted an extremely under valued bitcoin miner and the rest is history.
MODE is a BTC trading platform with a new payment platform utilising open banking. The US markets would recognise and understand that, even if they have never heard of MODE the app/platform.
I would go as far to say that trading platforms and payment platforms are more widely known and understood than bitcoin miners. The likes of paypal and binance/etoro etc are more widely know than argo blockchain, for example. I would agree no one knows about MODE at this moment, but that will change. Savy US investors wont wait until MODE adverts are all over the tv before deciding "ive heard of those guys! Time to invest!"
I would apply the same logic to my own investment. I had never heard of MODE but invested based on the value i saw in this company based on my research
MODE may or may not surge on OTC going live, but i dont expect it to fall either. I also think the 40's will be a thing of the past in the next few weeks. All imo, of course
My guess is that it's a hint. MODGF is the OTC ticker (see stocktwits).
Perhaps an RNS on monday morning. If so, the fireworks will start as we warm up to the US market opening at about 2pm our time.
When i was in ARB in Dec-Feb the US open always gave a boost. It was also nice to be able to watch the share price move up in dollars whilst London was closed. Always gave a nice opening boost the following morning
Not a guarantee with MODGF, but its BTC related plus more. The US market values this type of company at higher valuations than LSE
THG is garnering the most attention as it is pretty much the only company we know of at this moment. However, JR has confirmed that they are regularly being contacted by merchants (big and small) who wish to use MODE, above all else, to save money and speed up the time it takes to receive the money.
When the lid is lifted on the number of merchants offering MODE then i expect significant growth from this level of SP and MCAP
According to this document from the MODGF stocktwits board:
Mcap is struggling to push beyond £50m, although it is testing 48p again and again.
JR believes we are under valued vs competitors and i would tend to agree:
- FCA regulated (unlike most/all competitors)
- A crypto trading platform that is already live (proof of concept) and can be expanded to include more coins if desired
- A payment platform that is going live very shortly and has a number of merchants signed up including THG and a cancer charity (proof of concept).
- crypto rewards (suits the average millennial more than nectar points!)
The payment platform will be fine tuned in time, but essentially the next hurdle is to get as many merchants signed up as possible as MODE slowly grows its market share.
Imo all of the above results in MODE being under valued. Add in the team driving the business forward and their background and you start to realise that this app wasnt developed by a uni student in their spare time. It is developed by people who know the market they are taking on.
I dont think MODE will get the chance to become a household name like VISA, PayPal or Mastercard because i think we will be taken out long before we get the chance. I haven't a clue how much for, or when, but i would imagine within 3 years and i wouldn't bet against the value being in the billions based on the takeover price of other similar (albeit bigger, at present) fintechs
The live listing on OTC (MODGF) will likely be the shot in the arm the SP needs.
All imo, but £40-50m looks undervalued
The next question relates to how long it will likely take for the RTO to take place and the shares re-admitted for trading?
A similar RTO occured between spinnaker opportunities and Kanabo Research (KNB). A quote from the earliest spinnaker RNS i could locate:
"Further to the announcement on 26 February 2019 regarding the proposed reverse take-over of medicinal cannabis company, Kanabo Research Limited (the "RTO" or the "Proposed Acquisition")"
KNB was admitted to trading in February 2021, almost two years after the target was identified.
However, it doesnt look as if spinnaker was ever suspended from trading based on a scan of the RNS's (unlike UKSPAC). The RNS indicates a name change after a number of updates concerning the progress on the RTO.
Perhaps the circumstances surrounding KNB are not so similar to what we can expect here, but it certainly took a long time for spinnaker to become KNB from the point the target was identified