GEO - GeoOP - Work Management Software

[Harvey Specter]

Does anyone know how it is possible to allocate shares when trading has been suspended prior to a new ASX IPO?!?!?!

Just read the latest updates allocating shares to CTO and CIO.

They are currently listed on the NZX so can do what ever they want True-Grit-8-006.jpg

[mushroom]

Has anyone read the GeoOp prospectus. https://nzx.com/files/attachments/263802.pdf

Thoughts?

[Survfer]

Had a belated look, first impression it is more of the BS disclosure they’ve heaped on NZ investors. Expect the ASX to do a much better job protecting the small shareholders than the NZX.

What struck me most is the letter from the Chair states …. Immediately prior to Geo taking over ownership and management of GeoSales, this product lost a major customer at the end of FY16. This customer loss, which was fully disclosed at the time of the acquisition, causes pro forma year-on-year revenues to appear to be flat [emphasis added].

The veracity of this statement is important because the GEO Sales (then IIT) acquisition was a related party transaction, the Chair and related entities were the majority owners of IIT. My recollection is the IIT acquisition was completed on about 1 June, but there was no disclosure of the loss of the major IIT customer until well into July, more than a month later. I can’t absolutely confirm the dates as they’ve pulled the announcements from their website. It stretches credibility to believe the IIT vendors didn’t know about the major customer loss well before the acquisition completing, you would think they kept closely in touch with a customer representing perhaps as much as a third or more of their user base. Also, the customer implemented an in-house solution, the shift wouldn’t happen overnight, in normal circumstances there would have been a migration plan including getting the customer’s data across from IIT to the new system.

Then there’s the question of how come the auditors subsequently signed off the FY16 annual accounts without impairment given the major customer equated to possibly a third or more of IIT’s users and a massive hit on the revenue line.

The reality is GeoOp’s minority shareholders had a related party transaction dumped on them that Blind Freddy could see was a dog, their customer base had collapsed in Aus, a good indication the product was flaky and the US would follow. IIT’s revenues still haven’t recovered to anywhere close to pre-acquisition levels, the share price has suffered accordingly!

There’s a lot of other stuff that should scare off investors.

[Leftfield]

Helpful info' Survfer...... good warning for potential investors. Perhaps your info' should be passed on to NZ Shareholders Assn?

[mushroom]

https://www.nzx.com/companies/GEO/announcements/307732

Just prior to the end of the Offer period, ASX advised GEO that it required significant additional capital to be raised above this minimum to satisfy its own requirements.

Looks like ASX doesn't want a bar of GeoFlop?

[trader_jackson]

https://nzx.com/companies/GEO/announcements/308773

Sounds like a very expensive U-turn!
ASX clearly skeptical, and there wasn't enough support to remove this skepticism.

[mushroom]

Wow, reduced cash burn to $140k a month.. and had only $250k in cash left.. had to borrow another $1 mill from the available $1.5... Am I missing something here??? Why won't this company die?

https://www.nzx.com/announcements/314951

http://nzx-prod-s7fsd7f98s.s3-websit...951/275538.pdf

[Survfer]

[QUOTE=mushroom;706515]Wow, reduced cash burn to $140k a month.. and had only $250k in cash left.. had to borrow another $1 mill from the available $1.5... Am I missing something here??? Why won't this company die?

The CEO resigned in late January, today they announced the CFO is going at the end of March, the coincidence raises warning flags. This triggered me to have a look at the half year accounts. A few takeaways:

• There’s no mention of how revenue for the half year to 31 December 2017 compared to the 6 month period ending 30 June 2017, which should raise a flag. It looks like their operating revenue fell by around 5% and possibly a lot more depending on how much grant money they actually got. The IIT (GeoSales) acquisition the major shareholder dumped on them continues to collapse in the US just like was happening in Oz prior to the acquisition, GeoServices growth has tanked which isn’t a good look for a SaaS startup still hemorrhaging serious cash.
• The much hyped reduced cash burn hides the fact creditors rose by $337k while receivables fell by $142k relative to the prior comparable period ending 31 December 2016, a negative movement of $479k.
• The P&L shows grant + interest income of $160k, less $3k interest shown in the cashflow statement, making the grant income $157k for the half. Adding the $479k negative creditors/debtors movement to the net $1,672k cash consumed in the period, then winding out the grant income of $157k and crediting the $660k ASX/restructuring costs, suggests an underlying operational cashburn for the half of around $275k pm. However, the cashflow statement shows grant income of $239k, not sure why the difference to the P&L’s $157k. If $239k is the true grant number the underlying operational cashburn was around $290k pm.

The end can't be far away?

[hardt]

Wow, reduced cash burn to $140k a month.. and had only $250k in cash left.. had to borrow another $1 mill from the available $1.5... Am I missing something here??? Why won't this company die?

The CEO resigned in late January, today they announced the CFO is going at the end of March, the coincidence raises warning flags. This triggered me to have a look at the half year accounts. A few takeaways:

• There’s no mention of how revenue for the half year to 31 December 2017 compared to the 6 month period ending 30 June 2017, which should raise a flag. It looks like their operating revenue fell by around 5% and possibly a lot more depending on how much grant money they actually got. The IIT (GeoSales) acquisition the major shareholder dumped on them continues to collapse in the US just like was happening in Oz prior to the acquisition, GeoServices growth has tanked which isn’t a good look for a SaaS startup still hemorrhaging serious cash.
• The much hyped reduced cash burn hides the fact creditors rose by $337k while receivables fell by $142k relative to the prior comparable period ending 31 December 2016, a negative movement of $479k.
• The P&L shows grant + interest income of $160k, less $3k interest shown in the cashflow statement, making the grant income $157k for the half. Adding the $479k negative creditors/debtors movement to the net $1,672k cash consumed in the period, then winding out the grant income of $157k and crediting the $660k ASX/restructuring costs, suggests an underlying operational cashburn for the half of around $275k pm. However, the cashflow statement shows grant income of $239k, not sure why the difference to the P&L’s $157k. If $239k is the true grant number the underlying operational cashburn was around $290k pm.

The end can't be far away?

Deferred grant income from the FY17 statements, nothing out of the ordinary having CFS differ from P&L.

GEO OP	FY17	1H18
Grants Received on P&L	382	157
Grants Received on CFS	236	239

Why the government spends millions of dollars on this kind of business is lost on me...

Without some meaningful growth or huge reduction in costs will they ever get away from cash burn.

Margins are expanding which is a sign they are at least headed in the right direction...

[mushroom]

Another director bails
https://www.nzx.com/announcements/315598

GEO Interim Report HY 18
And more lies?
http://nzx-prod-s7fsd7f98s.s3-websit...645/276357.pdf