Member Info for skid35

Hedgehog.
Why will this be bought out? They have just put the company up for sale and clearly no interest.

Revenue recognition is the correct treatment, but in respect of this contract revenue recognition is very aggressive due to the contract structure which clearly has too few invoicing milestones to build up such a level of "debt" (whether invoiced or not).
I still dont really know what the issue is - there is no communication that it is due to non performance on kromeks side, but I can understand wanting to sort this out without going full "legal" unless the contract is so weak that there are unfavourable cancellation clauses and remedies. It was mentioned in the interims so has been going on for a while.
If this goes tits up the BOD would have lost all integrity to go for a rights issue, as a shareholder I supported the last issue based on BOD promises which have not been met. This would have to be at a ridiculous discount to force support.
Anyway I hope the "expect" works out in the next couple of months.
Hopefully the new non exec can give the comapny a good kick on contract management going forward, the working capital simply cannot support this otherwise.

Prof. As a long term holder completely agree, seems to be trading in a 55-65 range recently whatever the news. This is lower than ?last year despite what I see as more visibility on revenue and profit.
Hoping that wrong second half and better visibility for 21 will take this to an 80-100p range. I remember last year it went up to c130p on no news, can you rem am we any reason for that?
Agree would like shares in skinbio directly, rather than an indirect holding.

disappointing share price movement today. hopefully a write up somewhere as a recommendation to get some new interest.

Exceptional across the p&l and balance sheet.
Wondering when this will impact the share price, if it doesn't what will?

It needs to find a home with the original customer at the same price, I think most of the contract value is in intellectual property and services so the product may not have a lot of value in itself.
Would hope 20p, no calculation just my average buy price!

Jimzi, not a write off but a provision - a write off would confirm it is non recoverable. Although they "expect" it to be recovered this has a range of probability from 100% down, when an rns confirms this is back on track and the auditors sign off the provision release this should fly.
Shareholder communication, including results 6 months ago when this was not mentioned as a potential issue, need to improve to provide greater visibility. As I said I have contributed to the additional share raising requested by the BoD based on a very positive view of the future, I don't believe this is wrong but just put back 1-2 years.

Johny. not a troll, just calling it now it is.
I am a long term shareholder here including subscribing to rights issues, running at a slight loss but a long term holder. Fully supporting great British tech companies.
History has been poor, please provide details of another company where the company has had to provide a year's revenue due to contract non performance?
As well as the positives we need to get real here, process and control needs to improve.

Thought this would run up a bit more today. Not just the funding but the overall numbers.
Surprised this is just under the radar, but like a lot of good aim stocks.

All, as a shareholder I want an rns
1. In the next couple of months reversing the accounting hit AND actual CASH, not just reinstating revenue
2. Cash from any new deals, not revenue recognition, in rnss in 2 or three years time showing they have learnt lessons on contract control.
Both will boost the shareprice massively.
Real believer in this company but cannot brush failures under the carpet, where no one in the company has said what changes they have already made to ensure it would not happen again.

Interesting day tomorrow.
Can never understand why this investor hasn't built up a stake in the market, in addition to this.
Assume there is no placing with other sbareholders.
Will be nice to see revenue numbers as well, hopefully pre released to this investor hence the price?

Always wondered about Crystal amber as an investor. Used to own some shares in Northgate where they were a large shareholder, as with equals this has been a massive failure in share performance.
Buying at the current price should be sensible, I would adding no spare funds.

Tracy, I can't see a shortlist being a communicated event even if enet are aware. Assume customers would go with a multi vendor strategy, so volume would not be secured on an mou until firm absolute orders are placed?

L2, certainly hope so - the attraction when I first bought in (average price 22p) are even more apparent now.
An aggressive revenue plan does need strong commercial controls and discipline, hopefully non exec oversight will nelp.

Prospects are there for sure, it's the ability to execute that is the concern.
Recent history has been very, very poor since a large fundraise to support growth - the accounting provision cannot be brushed under the carpet as this shows poor contract management and control.
I am a shareholder with a slight loss for 2-3 years and have not been happy with CEO, cfo or board performance.
Simon Thompson as a cheerleader is a worry, constantly called this as a buy in the 20-30 range and has a poor track record

Thanks for the link.
Great forward forward strategy, if they can deliver.
The response on the accounting provision was poor 1. Why cannot they enforce the contract terms, are they really do poor to not be enforceable 2. If the contract is so poor why their revenue recognition is so aggressive to recognise revenue before it is physically delivered 3. A bit wooly on when it might be reversed.

Mick, this is irrelevant.
If you have the patent you can assign it.
The issue is primarily where a specific customer in a specific contract wants specific r&d varied out to their specification. Ownership of this ip is strictly dependent on the contract terms.

Thanks all, as a bean counter it is difficult to get my head round the technology but your replies have helped greatly.

For the science guys on the board.

How easy is it to develop this technology ? If so why don't we have a covid test, similar to an alcohol breath test, where you blow into a bag with an instant response. Not being clever, just want to understand.

It was announced on 27th may in an rns, not new.