IOT’s Christmas selfie sales were ok, but not sold-out great
IOT Group has fulfilled promises to make serious bank from its selfie drones over Christmas, but the numbers show sales weren’t as festive as perhaps expected.
The company was pinning its hopes on Christmas sales in the US, South America, Europe and Australia to lift sales receipts from the $67,000 it took in the September quarter last year.
Come December 30, it had smashed that target, hitting $210,000.
However, given retail sales prices for the two drones IOT sells, that figure isn’t as spectacular as the ones implied when Stockhead contacted the company in October.
The ROVA is sold for $US150 on Amazon and IOT’s stated price for the AirSelfie is $US300.
Based on these numbers, the company would have sold about 1135 ROVAs or about 566 AirSelfies.
IOT Group did not provide sales figures in its quarterly report.
Stockhead is seeking comment from the company.
IOT also spent $649,000 on corporate and administrative costs, wiping out the $582,000 raised from investors in October.
The Christmas period sales were not enough to fund the company’s ambitions.
It is in the process of raising another $2.3 million from investors now to supplement working capital, marketing, and product development.
Founder and director Sean Neylon has told Stockhead in the past that they want to develop new products in house.
The company has had a troubled past, first fighting off legal troubles with founder and now-exCEO Simon Kantor in 2016, and last year bouncing a new chairman hours after he was picked for the job.
The company looked set for a turnaround when it brought on experienced retailer Steven Kaylicos as CEO.
IOT’s share price was 0.8c on Wednesday morning. It spiked in early December to 1.5c on the back of hopeful expected Christmas sales announcements.