Was reading the financial statement and notes (in conjunction with the LIGA announcement) and was stunned to find out in the last five years HWAL’s market cap has gone from $231 million to $6 million all while owning the same 17,500 master recordings collection.
Obvious they still haven’t figured out a way to monetize the catalog as the company only booked $63,000 of revenue. They likely had to pay at least 20% of that number out in royalty fees.
The goofy appraisal of the catalog at $146 million is just silly. The number that seems to be missing is what HWAL actually purchased the catalog for (ten years ago).
Then look at management’s forecasted revenue and income projections as of March 4,2021.
2021: Sales: $2 million, Profit $1 mil
2022: Sales: $10 mil, Profit $5 mil
2023: Sales: $20 mil, Profit $10 mil
2024: Sales: $20 mil, Profit $10 mil
Now let’s look at the actual results:
2021: Sales: $524k, loss $24 mil
2022: Sales: $266k, loss $1.2 mil
2023: Sales: $300k, loss $1.6 mil
2021 results had a $17 mil impairment charge but they still lost $6.6 mil from operations.
Both 2021 and 2022 sales included about $230k from Lobbying so the music catalog licensing sales were quite small.
2023 results are thru 6/30/23.
Exact same management who gave shareholder these projections are the ones who delivered the results.
And people are willing to believe them going forward? Say goodbye to your money and hello to further dilution. IMO , company is worth less than a penny in it’s current structure. No wonder they made a deal with LIGA, another serial projection exaggerator.
