Member Info for WolfofWarks

Ash - I’ve not had a chance to look into the detail of it yet. Literally just looked at the front page and noticed the disclaimer.

Seems - okay but a niche relationship in one sector in one region. It there is an established link to Lenovo then this a positive stop, it’s not major news though. If they are hanging off Lenovo’s coattails then maybe not so much.

Like I said in the other thread we really need to see execution now.

Calm down children.

Simply pointing out given the debate around the accounting treatment that this part if the disclaimer is unusual. If you can point me to another supplier of IT equipment who has such a disclaimer on the front page of their website it would be much appreciated.

London - if you carry on through the disclaimer is goes onto say this which has raised my eyebrow:

LFS do not, nor intend to, offer or provide accounting, tax or legal advice to customers or partners. Customers and partners should consult with their own financial, tax and legal advisors. Any tax or accounting treatment decisions made by or on behalf of the customer or partner are the sole responsibility of the customer or partner.

Might well be a coincidence but I’m not going to lie I find it moderately concerning.

For me there is two components to what is going on at the moment

1) we need the RNS that confirms we are trading and proves the concept. Doesn’t even need to be huge numbers, 10 clients for £100m signed sealed and delivered will prove the potential of the rollout.

2) we keep getting incremental RNS/tweets to wet PIs appetites which don’t amount to much. Co-operation agreement here there and everywhere. Promises of all these different regions, talk of regulations in an interview and then no confirmation in any subsequent RNS, etc, etc.

AZ - Get us 10 Italian customers over the line and show us this is a business.

My assumption is that due to the tech the % fee will be pro rata on a transactional basis and will be highly repeatable. The company just carries on as normal. The storage aspect shouldn’t be an issue as they would be storing the stock with or without the monetisation.

This is the detail we haven’t been provided with yet.

Gotham if you re-read the extract

The eligible CLIENT COMPANIES are ready to implement the inventory monetisation process and THEIR financial advisory teams (including external auditors numbering among them two of the Big4[1] audit firms) HAVE APPROVED the structure and derecognition accounting treatment of the inventory monetisation transaction.

See - no mention of any regulatory authority approvals, assuming they are needed. They RNS basically said the client companies auditors/advisors have had a look and they are happy with it.

I know they are two separate considerations.

My initial point was that’s the RNS (Sam’s reference) referred to the drawing up of a contract which has been vetted by the clients auditors (2/4).

The second part which is the approval of the Syme proposition by the relevant regulatory authorities in each region. AZ talks about this in the nov/dec interview.

Hi Gotham I didn’t say anything about the accounting.

Hi Steve - the captive bank will be offering investment products to individuals (the funders) though surely?

Hi Sam - yes I’ve read it numerous times. They have drawn up a contract that they believe meets with all the regulation and the clients have ran it past their accountants/auditors, of which 2/4 if the big boys have rubber stamped it.

I haven’t seem any confirmation of any regulatory approval though. Last thing I remember seeing was the Middle East waiting for approval. I’m working on the assumption that Italy is in the bag as I’ve heard it being referred to in interviews.

I think the UK will most likely need approving by FCA, PRA & HMRC.

Why would you need a blockchain package for mortgages?

The point of the tech is that is tracks the stock through the process flow right up to the point of the money being received by the end customer and then triggering the stock buyback.

The point if the tech is that is tracks the stock through the process flow through to the money being received from the end customer.

I’ve mentioned this a couple of times. The biggest hurdle will be getting this past UK and US regulators where we have the highest standards of financial regulation. The accounting regime in the US is the toughest of them all after Worldcom and Enron.

Italy is all well and good but it’s well known for its corruption, and hands up I don’t really know much about the Middle East.

If anyone is interested in research check out the Sarbannes Oxley Act in the US.

Cheers I’ve got it

Tech company procures IT services is hardly breaking news. Can someone explain the relevance of it to me? I’ve done some work with Gartner before. They are IT consultants.

Hi divvyup - New ‘Tag’ group and Quadrivo are setting up a captive bank which will provide a BAAS (banking as a service) to SYME. On the 8% fee charged Syme gets 2% and the funders get 6%. So Syme is the beneficiary of the bank but does not hold an equity stake.

Although I understand this is only one of the potential funding options.

Chalker - so the original company Supply@me SRL will have the £225m loss sat in it which is then being consolidated into Supply@me Plc (previously Abal Group). So the individual company sheet for the Plc will have distributable profits in it.

Hi Sam - I don’t try and predict either because it’s a complete unknown and we are not yet in receipt of all the facts. I have an idea in my head of where I think it should be at any given point based on the information we do know. I also think and based on my experience with other shares that when we get the news and it shoots up they’ll probably be a fair bit of selling and then it’s a case of where does it settle after that until the next bit of news, rinse, repeat.

I even think it’s difficult to understand the number of potential client companies and it’s been a bit confused by these gross originations. Firms have been sat waiting for cash for almost a year in the toughest year possibly on record? Then there is the pivot to medium and large companies for IFRS 15, does this mean the smaller companies in the pool cannot go on the platform but could be replaced by much larger companies and larger contract values? This could be much better as we’ll be dealing with bigger (hopefully) more professional companies with better IT systems which (hopefully) should be easier to integrate. Unlikely to be able to carry out DD in under a month and for £16k imo on large corps though.

So I guess the point I’m getting at is it’s difficult to see what is happening at the moment until we start getting a regular flow of information, financial numbers, etc.

Hi chalker - in the interims there is £225m loss sat in the retained earnings. I wasn’t aware SYME had any subsidiaries.

I agree Parm. I’ve got a lot of respect for the work put in by Savvy and Weathergeek because they showed the methodology behind their thinking.

Hi Parkez - so off the top of my head I’m thinking if a company had a piece of tech that would sit well on our platform we could acquire them. Or perhaps something else we could do with the blockchain technology outside asset monetisation.