The company that wanted to set up a crypto ‘Silicon Valley’ in NSW had a terrible 2018
Link copied to
It looks like new CEO Mark Roper will have his hands full managing the fortunes of ASX minnow IOT Group (ASX: IOT).
The company issued a preliminary financial report this morning, and it wasn’t pretty. Here’s a rundown of the unaudited numbers:
The company has switched between a few different industries in its search for a sustainable revenue model.
That included a brief foray into the world of selfie drones, followed by a pivot to blockchain with tentative plans to set up a cryptocurrency mining centre in regional NSW.
Slam Dunk (Island)
Earlier this month, IOT Group copped a 4C query from the ASX, seeking clarification as to whether the company had a plan to stop losing money.
In response, IOT said it had cut costs and signed on as an advisor to another company, PropertyBay Holdings. It said the advisory deal is expected to generate revenue of $100-$150,000 per month before the end of the March quarter.
PropertyBay’s website shows a link to an “eco-luxury smart-island” project on Dunk Island, situated 4km off the Queensland coast.
Late last year the company forked out a non-refundable deposit to buy the island, and outlined plans for an ambitious $500 million redevelopment project.
Many insurers refuse to underwrite such projects because of cyclone risks in the region.
As for the terms of the deal, IOT said it would provide “initial technology and infrastructure framework for an innovative ‘Smart Island’ project”.
IOT Group’s former managing director, Sean Neylon, now sits on PropertyBay’s board of directors. Both companies share the same registered address in Sydney’s CBD.
Last October, Neylon sold all 32m of his shares in IOT Group for a consideration of $32,738.
In discussing its preliminary 2018 results, the company highlighted reduced retailer demand for drones and said the drone business is currently under review to determine its future viability.
For now though, the accounts haven’t been signed off by an auditor. IOT Group said when the accounts are finalised, it anticipates a repeat of the auditors’ half-year 2018 assessment which included an emphasis of matter paragraph on the company’s capacity to continue operating.
An emphasis of matter is used by the auditor to highlight an area of uncertainty. Shares in IOT Group continue to languish at 0.1 cents, where they’ve consistently traded in recent months.