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12 months for 30 merchants would be a concern if that is an indication of how long it takes to set up a merchant.
Hopefully 12 months was because THG didnt want to go all in at the start and instead wished to pace it out. It would hopefully allow MODE to fine tune.
If sites are being added quicker it suggests that MODE has had a successful early period and that THG are happy to speed up.
The key to MODE's success needs to be its ability to scale. If it were to become a household name then we need it to be scalable and something that can be adopted in a few days tops. Waiting weeks/months for MODE per merchant will be a major issue
the following websites:
https://modeapp.com/mode-partner-merchants
I just checked zavvi with a dummy run. Mode is a payment option. Not sure if this has been mentioned on this BB yet
Great post drshan.
At this price the world is our oyster. If we were to focus on a hypothetical here, how much would the following be worth:
- the worlds premier (only?) water surveillance company that provides instant feedback on contamination and a first line of detection in a pandemic (local or global)
- the worlds premier point of use illness detection device that can detect all sorts of illnesses at the exhale of a breath
- the worlds only "DIY" skin microbiome evaluation tool that tells you the products that work for your skin. £85 and you go straight to the right product instead of spending thousands on products driven by corporate PR
- the premier (and only?) skin testing product in a world where animal testing has been outlawed.
A little ahead of myself, but very much a possibility, however slim. And all of this for £50m on 7 October 2021?
And the data... boy howdy the data! A company in the position of that described above would be worth ££££
But what do you think?
POLX also required the inhalation of xenon gas. BT only requires the inhalation of saline solution and the expelling of moistened breath. I dont think there will be any associated health risks
We have many shots on goal, i just wonder how good the goalie is!
Completely agree pilgrim, and i dont doubt the potential behemouth that DVRG can become. However, i want to welcome chat that focuses on any potential downsides. I feel it is healthy to open a wider range of opinions than a fan boy echo chamber. A view of the wider risks associated with the DVRG offering will appropriately prepare for what may be coming down the line.
The sorry souls in POLX felt that they had nailed on FDA approval that would take their brilliant tech to the moon. 90% chance of success per a broker. Guess what? It didnt get approval and the SP fell 70% costing many investors thousands. Could such an event happen to DVRG? These are the discussions i want us to consider
As i sit in the car during a 4 hour drive to cornwall (penzance, pretty much as far west as possible!) I am mulling over the risks to DVRG and its many offerings. All opinions welcome, i think this could be an interesting topic:
Skin trust club
Already "live" and will enter the US and China in 2022. The only risk i can think of here is that it isnt widely adopted and is seen as a fad/too expensive. The early take up without promotion suggests otherwise. Skin trust club could be massive. Dont forget the value of the data!
Labskin
Already in operation and used by most of the top 20 skincare companies. Cant really think of any risks here other than a competitor coming onto the market, but ultimately we have the long standing relationships. The main competitor atm is the use of animals. Both controversial and unethical imo
Microtox (BT, PD etc)
Biggest risk is that it doesnt get widely adopted by governments/countries. There is a chance of a competitor but once the CR deal gets across the line (perhaps a risk it doesnt!) we can scale up to the extent that a rival would need both better tech and very deep pockets. Regarding BT it is possible it fails to get through the testing process or some of the other breath tests get to market first and leave BT in their dust.
BT is probably the riskiest iron in the DVRG fire in terms of commercial traction, but STC, labskin and PD will offer a lot of value in time. All imo, but DVRG may well be on track to that golden unicorn status.
I welcome additional drawbacks as i want us to have a rounded view of the potential risks and set backs that could be on the horizon. The positives are plentiful and well documented, so lets become the devils advocate and encourage some balanced views
It popped at 2pm, around the time the US opens. Coincidence? Or is the OTC listing starting to have an effect?
The recent broker change was to open up other avenues and the recent awards ceremony appearance by Jannis Legler can only have helped the cause.
Very early days but nice to see us back in the 40's!
Over the past couple of days the directors have bought 141,084 shares which is worth over £50k based on the SP at the time of purchases.
This indicates two things. The first that they are in a free period (usually around the time the accounts are issued) and the second is that they dont hold any materially sensitive information that would prohibit a purchase (insider info).
The fact the directors have sunk £50k into MODE is a sign to me that the eventual raise (likely 2022) will be at a price well in excess of the 38p or so of the purchases. They wouldnt collectively spend that much if they were expecting it to be diluted imminently to a value of say £30k, they would just wait.
It is likely that they expect said £50k to become, say, £100k before being diluted to say £80k. And they would have a better idea than us, that is for sure. If you are on a sinking ship you dont chuck more money at it.
MODE will come good, but we must wait
https://mobile.twitter.com/Patrick55999132/status/1443216190722224133
Mode payments take 20 seconds and can use face recognition all the way. 5 seconds of that is the merchant's site which would likely exist whichever method is used.
Make no mistake about it, the swift, easy and convenient payment option offered by mode absolutely trumps any other payment option i have seen. Bitcoin rewards are great to entice you in, but the swift speedy nature of mode will appeal to anyone under 40 with a smart phone
If mode do tv adds they need to show a real time payment example. Cardless, buttonless, timeless (could be their slogan :-) )
Imo the modern water merger was beneficial. The big ticket items on the horizon right now are PD and BT. We have a much larger slice of that pie. If we remained as SKIN we would have labskin and STC, among a couple of smaller avenues.
MSYS wouldnt bring anything anywhere near as significant to the table imo. The big ticket there is the miniaturised spectormeters. We already have a revenue share agreement, so why bother merging? It does a lot more for MSYS than it does for us right now. The brains of that tech is IP we already own.
According to a quick google search the following count as a pizza chain:
Ask
Bella Italia
Carluccio's
easyPizza
Franco Manca
PizzaExpress
Prezzo
Strada
Tops Pizza
Zizzi
Would still be great to get one of these guys, but the early assumption of the american chains may be a little optimistic (although pizza hut were an adopter of the bigdish app)
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