Blockchain wannabe IOT Group admits ‘we’re not that good at drones’
IOT Group has admitted it isn’t very good at selling drones — the product that brought it to the ASX in 2016 via a backdoor listing with Ardent Resources.
In the March quarter IOT made $134,000 from its “AirSelfie” drones — flying cameras that snap pictures of their owners.
On Tuesday IOT — which is now refocusing on blockchain technology and home deliveries — admitted it had been uable to “break into” the drone market.
“Whilst IOT has not been able to successfully break into this market to date, the opportunity was appropriately identified early on in development,” IOT told shareholders.
“Sales execution by distributors has been disappointing.
“IOT is commissioning an external review and report to the IOT board on the IOT Drones business.”
IOT is now hoping success lies in an investment in a home delivery app called RUNA that operates in Sydney’s northern beaches and eastern suburbs, and an ambitious coal-powered “blockchain applications complex” in the Hunter Valley, NSW.
The company burned $1 million in cash in the March quarter, mostly on admin, staff and manufacturing.
It had $91,000 left at the end of the quarter, after trying to raise $2.3 million from its shareholders.
It made $166,964 before costs, after 93 per cent of the shares on offer were not taken up.
IOT shares were flat at 0.4c.