Augmented reality player Thred shut down some of its chat app companies in June
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Thred is pulling the pin on some corporate entities set up for its augmented reality business, but it’s unclear if its apps or revenue strategies will be affected.
Tech developer Thred (ASX:THD) pivoted from social media to augmented reality in September, developing apps for others as well as marketing its own app called Sweep.
In December, Thred outlined nine revenue models including GeoChats, sponsored venues, in-app purchases, sponsored posts, enterprise data warehouse, augmented reality advertising and white-labelling to third parties via its “Agent Reality” program.
Company secretary Damon Sweeny said via email that two companies set up in October last year to hold the Sweep chat app and Agent Reality business had been replaced by another company called AR Technologies.
“It is standard practice for organisations to constantly consider and adjust the various structures, activities, brands, costs etc within its business. Agent Reality and Sweep still exist, just not in incorporated form,” Mr Sweeny told Stockhead.
“The whys and the wherefores [of the changes] I’ll not discuss, partly as they are not material, and partly as such information may result in unreasonable prejudice to the group.”
AR Tech chair Robyn Foyster referred further questions about whether the apps were being continued back to Mr Sweeny.
The former Seven Network lifestyle editor was a Thred director until March, when she resigned in order to chair subsidiary AR Tech.
David Wheeler, who counts directorships at Drake Resources (ASX:DRK) and UltraCharge (ASX:UTR) in his current portfolio, is chair of Thred.
Thred (ASX:THD) said in a threadbare annual report that it incorporated the Sweep App and Agent Reality businesses in October last year and asked ASIC to deregister both on June 29.
The company, via Sweep, offered an O-Week app for UNSW this year. In April it said the app was a success, although without mentioning whether it had garnered any revenue.
Agent Reality delivered an augmented reality app for the Vivid Sydney festival in May and June.
They reported $249,000 in revenue in fiscal 2018 and a $3.2 million loss (up from $2.8 million last year). The results included a $1.9 million tax rebate.
The board tried to do their bit, cutting their salaries down to $488,107 from $773,918.
From mining to messaging
Thred underwent a capital reorganisation in mid-2016, when it transitioned from base metals to online messaging.
Since coming to the ASX, the company has been attempting to develop a viable business.
In April it raised fresh funds, though only $527,000 of the $2.4 million sought.
The balance was raised from the underwriter of the share issue, CPS Capital, which has now emerged with a 30 per cent stake in the company, and is the source of the $3.2 million in cash on Thred’s full year books.