Dalrada Financial Corp (DFCO)

[SPM555]

Q2 fins have been released via OTC Markets. The bad news right off the bat is this isn't our quarter for the big spike in revenue as it looks like Prakat and Likido's revenues were not included. Total revenue reported was $32k, an uptick over the previous quarter but not the big jump we're looking for. It's worth noting that it cost the company $7.5k to bring in $32.1k in revenue, a ratio that will look incredible if they scale it up.

The past 4 quarters of revenues look like this: $34k, $38k, $17k, and now $32k. Next quarter though will include Likido and Prakat revenue. That's noteable because the filing mentions Likido making $311k in revenue the 6 months ending Dec 31. The quarter after that may begin to include Dalrada Health. Q3 fins due mid May.

They reported another significant gain via expiration of old accrued tax liability of $1.3 million. This is the third quarter I believe that this has happened and the first time they PRed it and it got some decent interest. Last time they never PRed it and there was no reaction.

The part that piqued my interest the most was the details of the Likido acquition.

Effective December 6, 2019, the Company acquired 100% of the interests of Likido. In consideration for the acquisition, the Company issued 6,118,000 shares of its common stock at $0.0448per share, or a total fair value of $274,086.

This deal tells us a lot about what the management of both companies believe $DFCO common shares are worth. If the market grasped the implications of this PR back in December we would have taken off and never looked back. Likido only got 6.1 million restricted common shares for 100% ownership of their company. If they thought for a second that $DFCO was going to dilute and ruin the share structure they would have done the deal for a much larger block of shares. 6.1 million restricted shares means they won't be able to sell any time soon and when they do they will be selling into strength and much higher prices. Otherwise why sell their entire company for a mere 6.1 million shares? This was in essence a clean reverse merger of Likido merging into the $DFCO 'shell' without any dilution/reverse split drama that tends to play out with those. And Likido is just one segment of this company.

It's also noteworthy that we're currently trading underneath/ at a discount to the fair value of those shares Likido got. That fact alone should put a bid underneath us at .045 if the market was actually paying attention.

The Prakat details are also mentioned, specifically that $DFCO acquired 74% of their company for 3.6 million restricted common shares. Again, think about what these deals mean and what it says about how the parties involved value the $DFCO commons.


https://backend.otcmarkets.com/otcapi/company/financial-report/243145/content