Sign Arkansas Banking IOU Later

Industry sign banking arkansas iou online

so ioup has had an amazing run especially in february where the stock price increased by over 250 percent which put the company in a lot of people's radars including mine so in this video we're going to discuss what this company does what they're hoping to achieve and we're also going to dive into its financials which is arguably the most important part and i'll also give you guys my opinion on the company hey guys my name is faizi on this channel we talk about australian personal finance and investing now before we start i just want to say that this is not financial advice i'm not a financial advisor we are speaking in a very general sense only i just have a passion for investing same as you so let's get into it so to put it simply iou's goal is to be one of the leading digital transaction processors in the booming cashless economies of south east asia now this is perhaps the biggest differentiator of the company because these guys are targeting southeast asia and that's the main focus not the us or europe which is the focus of other similar companies now this company has three main broad offerings mobile banking digital payments and more recently buy now pay later so let's have a look at this now through the iou platform customers can mobile bank and have basic financial services like transaction processing id transfers and secure kyc onboarding when signing up for the first time now the main benefit of this is that this reduces time and unnecessary paperwork that they would have to traditionally deal with similarly with digital payments customers can easily pay for bills for electricity water prepaid phone charges and e-commerce as well and then lastly we have the partnership with easy store which is the buyer now paleo offering now easy store has been running for over seven years and they have over seven thousand merchants across south east asia so then of course this partnership makes absolute sense because easy stores has merchants in this region and iou pay is targeting this region so that's quite good now the main value for the customers that's created is that they have access to an easy web application or an app and the main thing is the speed and cost benefit that i mentioned earlier because they can do things very very quickly and bypass unnecessary processes now the value that's created for the big brands and big merchants is that they get access to the customer's credit score electronic kyc which makes it much more quicker for them as well so basically with using iou's platform merchants are able to trust it because it has id and credit scoring and customers want to use it because it's quick and has less paperwork now as you guys can see in this slide iou pay is basically a middleman in this whole transaction they essentially purchase the inventory from the vendor who is a wholesale vendor and they buy it at a discount then they resell it to the individual stores and they make a cut in between now in this whole transaction iou does have risk because if the distribution channels don't purchase the inventory then the company is basically left with excess stock but iou is saying that when it comes to the inventory sell risk it's low and it sells out each week so that's obviously a good sign now looking at their banking partners we can see some big names on here like citibank standard chartered and so many other names that i can't quite recognize but i'm sure they're quite big when it comes to southeast asia now in this slide we can see the opportunity that iou pay actually has because the total population of southeast asia is 655 million and out of that we have roughly 400 million adults now of that 400 million 100 million have full banking services like bank accounts credit investment and insurance but we have the underbanked population which may or may not have bank accounts but they don't have credit they don't have access to investments or insurance and then we have the 200 million population which potentially doesn't have access to any of that now this is a huge growth opportunity because they have access to 200 million people and if they can get these guys onto this digital platform then this will be quite good because we can see that the internet economy is booming and it's expected to be 8.5 by 2025 as a percentage of gdp so since the trends are moving towards digital payments if iou can capitalize on this then this is a huge growth opportunity okay now let's dive into the financial of the company and see where they currently stand but before we do if you found value in this video so far please leave a like and subscribe it really helps out now this announcement right here is quite a fresh announcement because this was released on the 1st of march and we can see that revenue has decreased by nearly six hundred thousand dollars which presents a decrease of seventeen percent on a year-on-year basis but then if we look at the loss the loss has actually decreased by twelve percent so let's look at some reasons why this is the case so diving into the profit and loss statement we can see that the revenue has decreased as we spoke about earlier however there is an extra 880 000 worth of extra income which is classed as other income which we will discuss in just a second so just keep this 880k in mind looking at the expenses fees are mostly similar to the other corresponding period however there are a few discrepancies and let's go through them the compliance and professional fees have increased quite significantly which hopefully might be a once-off expenditure let's hope and the admin expenses have also gone up around three times now looking at the balance sheet we can immediately see the huge increase in the cash and cash equivalents now this is because iou has done successful capital raisings before so they're basically loaded with cash to continue their mission and if you compare it to current liabilities or non-current liabilities you guys will see that they don't actually owe a lot of money if we just look at it on a cash by cash basis now in fact the current ratio of the company is over nine which means that they've got solid liquidity which is a huge plus since this company is a fast growing company which is not profitable and they currently have negative cash flow from operations there needs to be a solid cash base and we can see that in the balance sheet so hopefully this should be enough to sustain them through the next few reporting periods now looking at the statement of cash flows we can see that the receipt from customers has increased year on year but so has the payments to suppliers and employees and cash flow from operations and cash flow from investing activities still remains negative now the main cash injection in this business has recently come from the share issuance that we spoke about earlier and in the end right here we are left with 8.5 million dollars worth of cash which we saw the exact number in the balance sheet now do you guys remember the 880 000 that we spoke about earlier well this is a breakdown of that other income now we can see some bank interest of 1100 however this could be mainly because of the cash that they have sitting around from raising capital and the huge forex gain of 172k is also just a once off gain so we can't actually include this as actual income because it won't be reliable and it won't be ongoing now to me it seems that the only reliable income here is the selling of mobile prepaid airtime products of 660k which makes up a huge percentage of this overall income so that was a high level view of the financials now i'm going to give you guys my thoughts on this company now when i first reviewed dough about a week ago i like the fact that they were looking to empower individuals to take control of their finances and it looks like ioup does the same thing by giving more people access to mobile banking and mobile payments they're basically empowering people by giving them digital access and the best part of all is that this is all in a region of the world that is very fast growing so i do like that now personally speaking i firmly believe that every single nation needs to have proper payments and a proper banking system and banking is a thing that should be accessible by anyone who needs it and for an economy to move forward and develop these are basically the essentials so this is good now obviously we can't ignore the risks that's around this company because let's face it it is super volatile now with stocks like this it is very very common to see gains and losses in a single day that are double digits so if you are planning to invest just keep that in mind it is surely going to be a bumpy ride because at the end of the day it is still a penny stock as for me i currently have no positions in the company as of now but i will be watching this one quite closely because i think it's a very exciting space since i personally come from a banking and financial services background career-wise whenever i see fintech it's quite thrilling because i think there is so much room for improvement in financial services well that's it for the video guys please like and subscribe if you enjoyed here are two other videos you can check out as well if you enjoyed this one and i'll see you in the next one bye now looking looking at these looking at the expand