http://www.mindark.se/investor-relations/financial-reports/documents/SemiAnnualReportMindark2012.pdf Any accountants out there able to make sense of it? is it good or bad?
First of all, I'm now where near being an accountant, so I might be wrong on some (or all) points. OK one thing on page 6 is the Net Profit of -12.186.000 SEK (-$ 1.570.884) so they lost money in the first 6 months of the year. One other thing that I notice is the 'Cash received from customers' which went from $3.113.280 to $4.294.602. I do believe that the customers are the players and from those numbers we see that we have deposited more then in 2011. For the entire 2011 period we have deposited $7.609.458, so it looks like those numbers are up. I believe that these numbers are the Net received from players so deposits - withdraws. Looks like a small decrease in deposited if you don't take the money used to buy Land Deeds. No idea exactly why they would mention this without the land deeds. They also mention that the 25.000 land deeds bought by one single investor was and June 30th and is not accounted in this report. So that income will be added in the 2012 annual report. The operating cost was up a lot (from $ 3.519.215 to $5.285.268) but they say that's because of the deal with SEE that went belly up, so this should be better for the next 6 months. UNLESS, this is part of the 6 million that SEE payed for Calypso that MindArk needs to pay back and there is still more to be payed back. But I do not know if money has ever been transfered from SEE to MA in the past for Calypso. If that's the case, there will probably be another payment to SEE. Tried to compare the numbers with the 2011 annual report, but there they are talking about the company and the parent company, and both had income from deposits, so I'm a bit lost one who is who in that report. One other thing is that the employees are down from 66 to 49, but this could be because some of the employees went from MindArk to Planet Calypso, so probably nothing shocking there. Liquid funds are doubled and I think that is the cash they have sitting on the bank. Toulan is planned to launch late 2012
Where's the huge investors money? The one that bought all the CLD? Wasn't that supposed to be in cash received from customers? And while we're at it, where's the site where we can have the CLD audited reports?
When I glanced the report, what struck me most was that even though the number of employees went down drastically, operating costs increased. Haven't had much time to analyze or read the whole thing, but I know enough about accounting to comfortably state that negative numbers are not good.
As mentioned in the report that huge investment of 25000 deeds is not in this report yet because the deal was done on june 30th.
Yes, and the problem is that never reveal how much they paid too SEE. Problaby at least the first 1MUD, but could be more so hard to compare the operating cost. The overall revenue looks like the previous year. It's not strange if the net deposits will go down in 2012, because people now haveing CLD can play at the same rate as they did before, but using the peds from the CLDs to decrease the deposits.
So far the story was (or was thought to be) that SEE was going to pay 6 million USD, and had transfered 1 million, and then did not make another transfer.. The report mentions that the increase of Operating Expenses with 13.7m SEK is mainly due to the settlement with SEE. 13.7m SEK is roughly 2 million USD, so if you deduct the 1 million SEE paid in advance, MA actually had to pay SEE for some reason...
Yes, the probably paid a bit more than the 1m to get the issues settled. But i am a bit unsure where the other planet partners share of the deposits are. Have they deduct it in the net sale (net deposits) or have they added it as a "operational expenses"? If it's the later, that could also explain and increase in the operational expenses. It will be harder to keep track how much peds have actually been deposited in to the game if they have deducted the other planet partners share from the MA share, so we only see the MA share in the annual report. I hope they can give us a more information about that so we can get a better view of how the depositing from the players actually looks like.
Maybe MA supplied wrong or inflated numbers when putting Calypso up for auction? Maybe MA somehow breached the contract? Maybe MA was unable to deliver an agreed milestone? There could be many reasons, but considering the report mentions that the settlement was satisfactory to MA, and the settlementapparently involved MA paying SEE, something tells me that there's been a fuckup.
indeed, and settlement in a court usually means that you know you were wrong but you have an idea that benefits both parties (you don't get sentenced and the other party gets some money). I'm afraid we will never hear the true story behind this, unless Marco spills the beans at some party where he is drunk :)
Well I guess I should report some not so good news since it is now official to me. I gave my accountant the company reports since late 2008 to 2012 and he said are you joking when I told him I was investing/associated with MindArk. Upon his advise and backed up by my father, they both recommended that I distance myself from MA as far as any financial matter is concerned. For this reason, as of tonight, I have started to chip out and will take the 4,000 usd or so loss in the early stages than a larger "potential" loss later. I do enjoy this game, I really do, but I think some sense has been talked into me as of late as far as financial matters go concerning MindArk as a company. Even though I now own two houses of my own IRL, the accountant has officially scared me off as far as further interested investment go into Entropia.
Well I thought about it some more, and I thin kI will go against all the advise and all odds and keep with it. Im now officially known as one of the crazy ones at home, but oh well, its just too much fucking around and a huge loss .... TBH I need to sleep more on this, I am concerned, worried even, to go against all good advise is very "out of character" for me.
I think any PP invested in far more money than any of us, if they are not worry then I think we are still safe? just a maybe
MA have had some problems I think they have waded through the worst of it. Probably getter better from here. The SEE case is resolved whatever that was about. Their marketing seems to be making a good impact. I have seen many EU adds now littered all over the web. Space once developed a bit more will be a good source of income for MA. Instances are beginnning to be used, albeit in infancy stages yet but bt more developed could be fun etc
negative numbers aren't anything to worry about I'd say. It's related to taxes and I'm not an accountant but i think most companies try and show as little profit as they can unless they plan to sell... The july-december report is the thing to wait for. If that still shows red numbers then it's time to inflate the life boat...
