First of all
The promissory note isn't revenue, it's a capital infusion to support operations and not overly the burden the company given the low market cap. Seems smart and shareholder friendly to me.
With respect to player counts, where are you getting your data? It contradicts the September update press release. Perhaps you think the CEO is lying or misrepresenting the data. Do you have proof of that?
"With the month of September now complete, and despite the start of a new school year, we are happy to report our Minecraft division revenue was up over 30% from the previous month. This was primarily due to the overwhelming success of the Skyblock Seasons and Olimpo releases. Additionally, our concurrent players increased significantly. We expect to see these numbers continue to climb as our servers penetrate the European and Latin Minecraft markets."
Moreover, if you look at the last quarterly report, the company did generate modest revenue and is up significantly year-to-date. Given the paltry market cap of less than $700k, the risk reward is highly skewed in favor of longs.
Companies in the private markets with significant liabilities, no prospect for revenue in the near term and addressing less compelling market opportunities oftentimes trade for market capitalizations well north of $10mm (in some cases, much higher). Being bearish on a company at this valuation with a sponsor that wants to increase shareholder value seems like a very bad bet to me.
Let's see what they have to say about Daytona and the agreement with Koralis. More to come on those fronts.
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