Have just done some further digging. Its actually an incredibly...

Have just done some further digging. Its actually an incredibly simple explanation funnily enough. And I think I had confused myself in my own interpretation of the half yearly.


Cash receipts from customers are merchant sales through the billing solution and payment processing platforms. If you have a look at APT they reported $927M in cash receipts from customers (i.e. merchant sales) against a revenue of $49M.

So the AASB standard suggests that merchant sales and COGS are not reflected as accrued revenue and expenses. It is indeed the transaction revenue, which Brian McGee has rightly pointed out for some time, that is recognised in the accrued accounts.

APT Half Yearly Merchant Sales ($1.2B MC)



NOV Quarterly Merchant Sales ($40M MC)



And in essence this half yearly report should validates the investment hypothesis of many, which is pleasing. They've audited the cash accounts. Merchant sales are rising strongly. The profit will come with economies of scale.

For me personally, I was never chasing this for the blockchain exposure with Novatti Platform, so the drop in revenue in that space is not a huge concern.

I think the really exciting part of this is the over-the-counter payment options for your everyday groceries and consumables. Its an enormous market in China. I'm talking trillions of dollars in merchant sales per annum. Put an app on your phone. Scan a Q code at the counter. Transaction done. Stupidly simple, but its the simple things that are often the best ideas. Not surprising that a few Chinese soph investors are jumping on board.