Still Very Undervalued, page-4

One day, I wrote down all the out-goings for CM8 over 2015, 2016 and 1H2017

If CM8 didn't have all these one-off extra expenses, they might have a chance to make some awesome cashflow!

In 2015, they had:

listing costs: $3.1m
transaction costs $0.4m
stock-based payments: $1.1m
consultants $.6m
travel and acc: $.4m
total: $5.6m

In 2016, they had:

currency loss: $.5m
finance cost: $2.0
transaction costs: $1.1m
stock-based payments: $1.4m
travel and acc: $1m
consultants: $1.4m

total: $7.2m

In 1H 2017 they had:

finance costs: $2m
finance transaction costs: $1m
stock-based payments $.4m
travel and acc: $.4m
consultants: $.9m

total: $4.7m


grand total: $17.5m

(also throw in total salaries for key exec and board members of $1.3m for 2015 and $2.6m for 2016)

If CM8 could be run frugally and just focus on their business rather than listing on stock market and buying huge companies they have no affordable way to pay for, paying 15% interest on loans and paying big transaction costs and consultant fees, and travelling all over the world to pull this stuff together, and paying themselves modest salaries without huge numbers of free shares, CM8 would be an awesome business!

Maybe this half the bottom line will look good... although apparently they may have to pay an early exit fee on their vendor finance loan !

every reporting season they report their impressive-sounding underlying EBITDA... maybe one day soon, when this financing nightmare is behind them, they'll report underlying ebitda will be more closely aligned to their real ebitda!

Financial year 2017-18 can't come soon enough!