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Dubber $DUB. A key to there being any value in this thing is whether the true gross margin = 65% as disclosed in accounts or 31% implied from the 4C. GM is always subjective - so large disparity at a minimum suggests a need for more questions.

Disclaimer. I review balance sheets as part of a personal investment process. For education purposes I'm sharing this here - but please be aware this is NOT my full personal analysis and in no way constitutes a positive or negative view on the stock. ... https://t.co/0LmDAdVi7V

4. $ATG This cash balance (whether $87m at Dec year end or the $41m at 31 Jan) is not available to shareholders. Best demonstrated by net interest income (=$0). NB: $41m cash = 30% mkt cap – so can significantly distort valuations if incorrectly (IMO) included in EV calcs.

3. $ATG The latest half was better (driven by squeezing artists) but is also seasonally strong and will probably partly unwind in H2.

2. $ATG Negative working capital was a positive feature of the business whilst it grew. Sadly the COVID windfall was squandered and revenue is now in decline. Because of season vol in working capital – net current assets is a better way to monitor BS strength and CF performance.

1. Articore Group ($ATG) (formerly Redbubble $RBL) is another company where there is potential confusion between a strong cash balance and a strong balance sheet. Headline cash of $87m is overshadowed by $92m in payables. The result is negative net current assets.

Disclaimer. I review balance sheets as part of a personal investment process. For education purposes I'm sharing this here - but please be aware this is NOT my full personal analysis and in no way constitutes a positive or negative view on the stock. ...

$PRO 5. Summary. None of this means PRO is financially stressed, but the BS does not have the optionality suggested by headline cash nos. Nor is it appropriate IMO to deduct cash from the mkt cap to calculate a cheap EV multiple given this cash is not surplus to requirements.

$PRO 4. The business is still loss making and cash flow negative. So it is likely that the reported cash balance will fall further before break even.

$PRO 3. The average cash position for the group based on balance sheet figures was $10.8m, yet interest received was only $150k (~2.8%). So presumably intra period balances were somewhat below balance date no's.

$PRO 2. $3.7m Other assets ($2.6m current and $1.1m non current) appear to be capitalised customer acquisition costs. No cash incoming from these.

$PRO 1. Working capital - broadly defined - is negative. Receivables less payables/benefits is -ve $1.2m (note the $1.6m blow out in payables for the half). Contract assets are -ve $8.1m. Cash + Trade + Contract assets is ~$0.5m. A long way from $10m net cash.

Prophecy International $PRO A few thoughts on the Prophecy Balance sheet which at first glance appears exceptionally strong with net cash of ~$10m. But there are a few issues to consider.....

$PME on track to spend as much on the buyback in week 1 as they spent on capitalised R&D in the first half...

$JIN Impressed that they have been able to keep this going as long as they have.

Genuinely curious how a company that spends $8m pa on R&D and has a total wages bill circa $35m is valued at $11bn. $ALU takeout at $9b has >$150m wages...

$PME - "significant investment"

The Negative Checklist: Reducing Errors

$JIN Jumbo. #churn

Pays your money, takes your choice... https://t.co/R9JavZdCAo