4. Why have the Company’s receipts from customers decreased from $111,000 in the quarter ending 30 September 2017 to $81,000 in the quarter ending 31 December 2016?
As advised to ASX on 28 December 2016 and on 19 January 2017, Advent Energy and MEC Resources terminated their consulting services agreement with Grandbridge on 23 November 2016. The reduction in the earning period of the contract by approximately 1 month out of 6 months of cash revenue equates broadly to the reduction noted.
As a result, the termination clauses in the contracts were triggered and a total amount of some $340,000 was recognised by Grandbridge as termination fee revenue in the period to 31 December 2016. However, cash has not been received due to ongoing disputes with the entities concerned, and a doubtful debt provision of 100% of this receivable amount has been included in Grandbridge’s financials for the same period.
Grandbridge Limited has sent two letters of demand to MEC and Advent Energy. .These letters request:• The sum of $212,052 payable to Grandbridge by MEC for services provided.
• The sum of $128,640 payable to Grandbridge by Advent Energy for services provided.
These letters were sent on 7 December 2016, requiring payment within 21 days. All amounts are still outstanding.
Hot Trading Hot Capital
GBA Price at posting:
2.7¢ Sentiment: None Disclosure: Held
