Oh, if you click More it has
their financials
.
Very interesting. As of last financial year-end they were $8.7m in debt with a $3.2m loss for the year and $428k cash on hand.
They made $40k revenue in that year, and $136k the year before, so pre-orders and physical game sales have been, uh, not great.
The fundraising docs have a few more nuggets of info too:
- RRP will be $250 to $350
- Launch to start within 6 months.
- Manufacturing 2,000 to 5,000 units per month.
- Confirms all games will be NFTs.
- Only 15 games at launch, including the 6 pack-ins.
- Tommy is only on $96k (he got a raise in 2021), the rest is stock options.
- John Alvarado got a paycut ($18k less) in 2021.
- Many of the people used in their advertising are not employed by the company ($0) and only "work" 15 minutes per week.
- Their Chief Marketing Officer is on $152k - what does this person do all day?
- They paid $1.35m to Ark for manufacturing but they had a contract dispute and may not get it back.
- Their auditor issued a "going concern" opinion with "substantial" doubts that they will succeed as a business and will be unable to continue beyond this year without additional financing.
- They have $3.1m in loans from board members, and are paying 10% annual interest on a quarter of those (and $1.1m interest is accrued and unpaid), plus $1.6m in promissory notes at 5% interest.
- They need a LOT more money, at least another $5m on top of the $5m they want from this - they will be doing another fundraise even if this one is successful (Reg D next time).
- While Tommy is the largest shareholder, he does NOT own a majority - only 28.8%.
- Tommy lied when he said there was tens of millions of dollars from big outside investors. The bulk of the money has been director loans and the crowdfunding, besides that there was $3.2m in convertible notes in 2021 (possibly the Republic funds?) and $3m in equity (the bulk of which was in mid 2019).
- "Based on current fundraising strategies, it is estimated that the company can operate until July 2022 without generating any revenue."
- Only planning to make 1 game every 2 weeks going forward.
- They have prepaid some components and the board will offer a line of credit (terms undisclosed), and hoping to get some lines of credit from manufacturing contracts currently being negotiated.
- Trying to raise $10m from venture capital firms (guessing this is what Delaware was about - sounds like a buyout), which is the amount they need to successfully launch.
- "If no other sources of capital are raised and if only the minimum [$10k] is raised as part of the CF offering the company would only have operating cash for one to two months."
- If they raise $5m from this crowdfund, it would only "fund the company for approximately 7 to 9 months".
- LOL Sudesh loaned them $675k on horrible terms - they need to pay him $100 PER AMICO SOLD (all the preorders!) until paid back, PLUS a $202k fee.
- Heh their $30m company valuation is based on a 15x ROI.
- Up to Oct 2021 $9.5m was spent on R&D (h/w + s/w).
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