TSK - TASK Group Holdings

[Schrodinger]

Back of the envelope:

Extra $3M since last announcement - $250K per month reducing burn down to $250K - $3M year (based on above $500k/m burn). I think they have reduced/slowed headcount- Also missing gross margin.. These numbers are a rough calculation moving forward.

This will mean another raise or upselling won customers - driving volume/revenue through the platform.

The real kicker is getting extra revenue from current customers. That will shift the dial in a big way.

[winner69]

Back of the envelope:

Extra $3M since last announcement - $250K per month reducing burn down to $250K - $3M year (based on above $500k/m burn). I think they have reduced/slowed headcount- Also missing gross margin.. These numbers are a rough calculation moving forward.

This will mean another raise or upselling won customers - driving volume/revenue through the platform.


The real kicker is getting extra revenue from current customers. That will shift the dial in a big way.

Re bolded comment

I don't think 'contracted' ACMR turns into cash that quick ......and i'm lead to believe they incur some extra cash costs to achieve that

Next set of financials will be interesting .....unless taken over before then

[mikeybycrikey]

Bit odd a large psrt of that announcement was an explanation as to how ACMR can also go backwards.

Covering all bases since they confused everybody in Sept with $6m and $7m on about the same days?

Wonder how long it takes and how much Plexure need to spend to convert the new 'contracted' ACMR into actual new cash flows?

At least heading in the right direction ......but the way announce things do make me a bit uneasy.

I wonder if ACMR for Plexure is seasonal or something. When you are relying on a small number of customers and revenue is I believe based on number of client transactions, I guess it can vary.

Different from someone like Xero where cost per customer is fixed and ACMR increases as customer base grows.

[Schrodinger]

I wonder if ACMR for Plexure is seasonal or something. When you are relying on a small number of customers and revenue is I believe based on number of client transactions, I guess it can vary.

Different from someone like Xero where cost per customer is fixed and ACMR increases as customer base grows.

Something to ponder, they keep emphasising that this is a new area for their platform i.e. low understanding/results to date. However this is also an opportunity as their customers will be figuring out what campaigns will turn into revenue (McD's) for PLX. Insights from the customer are extremely useul. I have been following McD's USA for sometime and are interested how their loyalty platform is progressing. They announced a few months back they are building this so this could be enormous is executed well. Their commentary was on the low utilisation of McD's vs their fast food competitors which means their is vast potential.

http://www.cnbc.com/2016/11/07/mcdon...p-in-2017.html

Its all about the execution now.

[Schrodinger]

Re bolded comment

I don't think 'contracted' ACMR turns into cash that quick ......and i'm lead to believe they incur some extra cash costs to achieve that

Next set of financials will be interesting .....unless taken over before then

Yes good call. However they do charge an upfront setup fee outside ACMR...$500K+ for larger customers? This revenue is also reported aoutside ACMR so should be added to ACMR revenue or subscriptions.

[Harvey Specter]

They have announced passing $10M ACMR (Actual or Expected?).

The 'C' stands for committed. To get that past an auditor (not that it has been audited), I would expect a contract and proof of volume or minimum spend.

Wonder how long it takes and how much Plexure need to spend to convert the new 'contracted' ACMR into actual new cash flows?

That is a good point. They wont start earning the AMCR until the software is implemented so could be months down the track

Yes good call. However they do charge an upfront setup fee outside ACMR...$500K+ for larger customers? This revenue is also reported aoutside ACMR so should be added to ACMR revenue or subscriptions.

In the meantime, they do get the non recuring set up fee.

[Cobber]

The 'C' stands for committed. To get that past an auditor (not that it has been audited), I would expect a contract and proof of volume or minimum spend.

That is a good point. They wont start earning the AMCR until the software is implemented so could be months down the track

In the meantime, they do get the non recuring set up fee.

Well its better than getting an announcement saying they need more time.

I guess what we can assume from this is that it takes roughly 12 months for them to grow rev by approx $3 - 5 million. Is this a fair statement?

I hope they have got their costs under control.

[Baa_Baa]

What do you think the reasoning is behind this approach to raising capital, issuing a convertible debt instrument at 8% for only 9 months?

https://www.nzx.com/companies/PLX/announcements/296353

Is the investor(s) not willing to stump up for the shares outright and hedging their bets that they get their money back plus interest, with the option to convert to shares at .28 if the SP is higher at the time?

I get it that PLX need the cash, it's more about how they've structured the capital raising and why it would work for PLX and the investor that I'd be interested to hear views on. TIA.

[winner69]

What do you think the reasoning is behind this approach to raising capital, issuing a convertible debt instrument at 8% for only 9 months?

https://www.nzx.com/companies/PLX/announcements/296353

Is the investor(s) not willing to stump up for the shares outright and hedging their bets that they get their money back plus interest, with the option to convert to shares at .28 if the SP is higher at the time?

I get it that PLX need the cash, it's more about how they've structured the capital raising and why it would work for PLX and the investor that I'd be interested to hear views on. TIA.

I thought duration and terms a bit odd as well

Maybe the takeover offer is on the way with settlement before the 9 months is up ... at more than 28 cents

[Cobber]

I thought duration and terms a bit odd as well

Maybe the takeover offer is on the way with settlement before the 9 months is up ... at more than 28 cents

That's a good theory actually. A short term punt on the possibility the company will be sold. I just hope its a lot higher than 28 cents!!