Member Info for Theanalyzer

Rxdav

Questions 1 and 2

Even most large companies tend to release audited prelims without an auditors report.

If there is an emphasis of matter para within audit report such as on going concern then as in IOG case this will be mentioned in the audited prelims.

The annual report is typically printed in a glossy set of accounts and this is usually produced a bit later. Very rare that any of audited numbers change between prelim and accounts.

Not sure why your so excited on these two points neither of which impact the companies value and will sorted in a week or two.

Audit reports are now longer because they include key audit matters explaining where auditors focused their work and the work performed.

Almost no company includes the audit report in the audited preliminary results these days.

Annual report includes a lot of less exciting required disclosures plus pictures and often is finalised a week or two later

Nothing to worry about.

I spoke to Tony and listened to presentation on Saturday. Much more substance than Crypto mining operations. He can explain how they generate real world cash from multiple ongoing applications. CTO has a strong pedigree as well. Net liabilities are a concern but hopefully creditors can be managed as company is raising funds, generating revenue and has control over costs. May buy a small block tomorrow.

Hole in balance sheet filled and new cash raised and debt burden reduced.

IOG can now progress programme.

LCF administrators likely to be invested for a period of time but exercise warrants and sell into price rises which means they must have been more confident of prospects from IOG than cash offer for all their debt.

Given state of balance equity dilution was always likely.

Cash burn was around £1 million in last reported six months interim results to May 2018 and cash at that date was £1.7 million. Reported revenue which is mostly profit under business model, was up almost six fold in 2nd half of year per Opti statement. Thus cash burn rating will have dropped in 2nd half of year and hopefully picture is improving every month as deals mature and new ones are signed. The deal flow rate is high. I am hopeful if cash were needed that the Board might be able to finance any short term cash needs with that type of improved revenue growth or even ask for upfront licence fees from some of the big companies it is going deals with.

The fact that licenses are being extended with guaranteed revenue terms gives me confidence to hold.

Everyone has their own limits. Opti is around a £25,000 holding for me so not life changing amount up or down.. Some AIM punters lost more than that in FlyBe or Red Emperor but this feels less risky than a punt on takeover or a oil company finding oil.

Time will tell and I have been wrong before.

LOG has a major hole in its balance sheet from non IOG loans and whilst a 20 pence cash bid for IOG would be a profitable and clean exit for IOG loans, the liquidators will want to maximise value from IOG warrants and convertible loan features as part of their responsibility to LCF creditors.

Overall I think it is a positive for IOG because LCF administrators can talk directly to IOG and can make the decisions.

Perhaps they can get bidder to up bid and confirm acceptance on behalf of their shares which would guarantee takeover deal going ahead.

Time will tell.

He now says he has made a lot of money in recent months and having derisked his position ie sold into price rises he is now off travelling.

The spread looks huuuuuuge.

When you look at some of the buys like the £40k buy yesterday you have to feel sorry for the punter a £25k loss in a few hours won’t make for a great start to the weekend.

Sadly ADL promised punters riches but only directors have benefited.

Time for a name change.

At interims at 30 June 2018 IOG had cash of £4.6 m and new LOG facilities of £15 m. It now has around £7 million. So it has burned around £1.5 m per month. It has around 5 months cash left at same rate albeit it can slow development spend. I suspect LCF administrators won’t be putting new cash into IOG and the fact that it is now their appointed director rather than LOG appointee means they are now closer to IOG than previously.

IOG debtholders rather shareholders are now driving the agenda and it is about recovering of value for debtholders that is priority.

I suspect auditors will have some challenges on going concern when final results are produced.in a month or so.

ExetrChief

Insolvency also includes not be able to pay your debts as and when they fall due and it is driven by a lack of liquity ii.e. not having access to cash that meant Flyb was in trouble.

PS Chapter 11 is a US concept and doesn’t exist in the UK.

Still think Board could have been more upfront about the situation they were in.

Opti doesn’t spend time putting out endless ramps but just keeps adding deal after deal. So I will continue to hold. Not fussed if some people want to **** off company because over time truth will emerge. If price drops heavily may buy some more.

The FCA job isn’t to help the company’s accounting. It is to establish whether profit warning was reported on a timely basis and if not censure the directors and fine the company as incentive to others to behave. Fine unlikely to be huge amount. Biggest issue is senior exec time spent on managing the process through to resolution.

If the market is going to fall, which I agree is likely, why does that hurt shorters?

Ironic If you suffer from dyslexia your spelling is good. If not I find hard to take your posts as a market savant seriously. We all make minor typos but your spelling of phenomenal as fanominal is exceptionally poor.

Results aren’t due until Q2 2019 as it states in announcement which including whether or not to book prior year adjustment

Moronic You must be smoking some strong stuff with your endless conspiracy theories.

Moronic Never heard of fixed cost borrowing?

Ironic Banging on about debt again. Do you understand WACC and how it’s works...

The Telegraph is talking about an old defined benefit scheme that was closed to new members in 2007. It had a shortfall of assets which covered over 75% of liabilities in pension trust but not 100%. Not great but not quite the complete disaster posted by telegraph.

New employees are on defined contribution scheme and not impacted.

How come companies ASOS and Fever Tree have done so well on AIM if the whole market is rigged? My answer because they generate lots of free cash flow. I do agree that bottom end of AIM is a mess with poor companies being ramped to get next bailout placing away. Some traders make money on this pump up shares and then forward selling but most punters lose money I suspect. That isn’t the entire stock market. As for shorting take jobs away that is socialist claptrap. If you short a company that is doing ok you will lose a lot of money very quickly.