This is a long one so get a cup of coffee and sit in a comfy chair.
As an investor in DUTV here is what I'm looking for and thinking about regarding the expected Quarterly report:
First, we have to keep in mind that the next Quarterly DUTV releases will report on the business activity that occurred between September 1st, 2014 and November 30, 2014. This is important to note because it is actually about 3 months behinds today's date.
With that in mind we need to recognize that revenue reflected in this next quarterly needs to be scrutinized closely. How much of that revenue continues to show up as Net Receivables in the 'Balance Sheet' & 'Quarterly' section will help determine the level of risk involved in DUTV as an investment. If the N/R figure does not show a significant decrease that clearly indicates to me that DUTV is having trouble collecting their revenue.
As of the last, revised report on August 31, 2014 DUTV had $3,276,000 in uncollected revenue waiting to come in. By the end of the next Quarter, November 30, 2014, that gave them 3 months to collect that revenue. If that revenue remains predominantly uncollected I would suspect that DUTV is having the same trouble that Virtutone had, but DUT does not have the liberty of insured collectibles so there is no guarantee of collecting. Some of that may actually be money due from Virtutone, which may not be collected for over 6 months from January 2015 when they went Bankrupt. And when that is collected it will only be a fraction of what is owed because that's what happens in bankruptcy.
I'm also hoping to see the Accounts Payable amount of $4,325,000 decrease in the upcoming quarterly. DUTV is going to need an incredible increase in income this quarter to start recovering from their A/P steady increase Quarter to Quarter over the last 4 reported quarters.
I've also noted that the Accrued Interest figure that used to be it's own line item on the Balance Sheet has now been included in the Accounts Payable amount on the revised last Quarterly. I suspect that was done to keep that accruing interest amount from being tracked by investors but I could be wrong.
Finally, Since whatever we see will be 3 months behind todays date we have to consider how Virtutones Bankruptcy in January may impact DUTV finances in 2015.
Hopefully we get better disclosure on DUTV's clientele and business partenrship(s) to help defray the concerns regarding the potential impact of Virtutone's bankruptcy.
Regardless of whether or not DUTV is able to the STOP trading sign and submit its quarterly report, the above issues will still need to be addressed in order for DUTV to be viewed as a viable investment vehicle in my honest opinion.
