Byte Power finds an extra $5.6m under the bed
Link copied to
Blockchain wannabe Byte Power is owed $5.6 million by clients, in overdue debts, and from a court settlement.
In a response to ASX queries, the company (ASX:BPG) said it wasn’t short of cash because there are a lot of people who owe it money.
It didn’t elaborate on when it expects most of that cash to come in, however.
The company (ASX:BPG) is owed $1.2m by a Chinese firm for a project started in December 2016.
Byte Power said it had finished the prototype of the ‘Wimobilize Big Data solution’ but was still owed some money. It didn’t say when it expected this debt to be paid.
Byte Power is also owed $3.27m by debtors to its subsidiary Wine Power, a wine distributor.
That debt was outstanding as at June last year. It also didn’t say when the money might come in.
The saga with Soar continues
The company also says Soar Labs still owes it $US800,000 ($1.14m) and 2m Soar cryptocoins, currently worth $8414.
The company ran into strife in early 2018 when its Singaporean developer SoarLabs allegedly stole $6.7 million of cryptocurrency.
Byte settled the suit against Soar Labs in June, and says it’s received the $US232,323 ($332,053) not in cash but the equivalent in Ripple coins, another cryptocurrency.
All of those Ripple coins were then sold, for a loss, with the proceeds totalling $274,899.
The company had $340,000 in the bank at the end of November — a rapid jump from the mere $18,000 in its bank account at the end of October.
Last month ASIC fined the company $33,000 for breaking continuous disclosure laws.
The corporate regulator issued an infringement notice after deciding Byte Power broke the Corporations Act by not keeping the market fully informed over December 2017 and January 2018, when it ran into trouble with Soar Labs.
The company has “vigorously resisted” the allegations and said compliance with the fine won’t be an admission of liability.
Byte Power says the cryptocurrency exchange it’s been working on since 2017 soft launched on December 18, and it has restarted selling its Byte Power X cryptocurrency tokens, after receiving legal advice that they aren’t financial products.
ASIC is less sure, suggesting the token could in fact be a managed investment scheme.
The company says it’s “considering what… steps are to be taken by BPG to address ASIC’s concerns”.
The sale of the tokens is critical to Byte Power as it does not have any other revenue coming in. The tokens made it $565,000 between August and November.
Byte Power shares have been suspended since December 22, 2017.