Facedrive Reports Q1 loss but Better Financial Metrics

  A number of my blogs on various websites including  EconothonII,Econothon,Workathon,and this one(Blogdaleup) have discussed the financial reporting problems of Facedrive.As Facedrive (FD) has moved erratically from a high of $60 to it's present low of $.60 per share.And it even stopped reporting financial results for a quarter.This blog has criticized the CEO Suman Parapajah for acting like a dictator although he only owns 35% of the shares.He and three other directors control about 60% of the shares.But surprise,surprise FD board reported it's Q1 results  on time.This however does not solve FD's main problem of an inconsistent CEO and board of directors.

       Q1 Highlights  

    Facedrive showed $10.7 million of revenue in comparison to $2.8 million for the same quarter of 2021.However net loss was up 45% to $8.1 million.Operating expenses were $4,950,000 of which $3.2 million were non-cash expenses.FD is still taking excessive impairment charges and depreciation and amortization expenses.These items are charged against revenues and making the loss bigger than should be.In addition, FD charged $737,000 to research in Q1.This is excessive for a mobile food company that does not need much  research.

        What was not in the Q1 report was information on it's acquisitions.In particular, shareholders need information on it's newest acqusition called Tally.It is not clear whether it is accretive to net income or not.Nor was there any mention of  a Special General Meeting being called to discus the sloppy reporting of financial information that shareholders need.

                                       

     

      Who needs the Board?

    The board of directors has been responsible for Facedrive falling in price from  $60 to $.60 a share.There appears to have beenhttps://www.zacks.com/ some insider short selling as directors made profit on the backs of shareholders.But there have not been any removals of board members.Instead the former CFO was fired.But still the overly aggresive accounting continues that expenses almost 60% of their expenditures in non-cash or arbitrary items.Once again in Q1, FD could be closer to a positive net income with more reasonable management.

     This blog has and will continue to push for a Special General Meeting to look at replacing board members with ones more sympathetic to  the price of the stock and to shareholders.Only when I see empty board seats will this blog be happy and the price start to climb.Until then the share price will trade below $1 a share.