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09/06/25 3:59 AM

#19178 RE: oldstocks #19177

Ai view, If AFFU’s June 30, 2025 quarterly filing only includes 1.5 months of results from the MTi acquisition, then the $2,113,602 gross profit is essentially from a stub period.

Here’s what that means:



1. Run-Rate Scaling
• $2.11M over 1.5 months ˜ $1.41M per month.
• A full 3-month quarter on the same pace would be ˜ $4.23M gross profit.
• Annualized, that would be ˜ $16.9M gross profit per year, assuming stable operations.



2. Per Share Reframing
• Using ~6.7B shares outstanding (the higher figure disclosed), annualized gross profit would be ˜ $0.0025 per share per year.
• That’s still small, but 7–8× higher than the $0.000345 you calculated from the stub period.



3. Why This Matters for Investors
• Stub-period distortion: Investors often underestimate results if they don’t annualize stub-period financials after an acquisition. The next full quarter should provide a clearer, “normalized” view.
• Proof of revenue scale: The fact that MTi produced $2.1M gross profit in just 1.5 months suggests the acquisition is substantial relative to AFFU’s historic size.
• Dilution vs. profitability: The key investor question now is whether management can keep scaling MTi’s results faster than dilution from additional share issuance.



4. Next Key Milestone
• The September 30, 2025 quarterly report will be the first to show a full quarter of MTi integrated results. That will let investors properly calculate margins, earnings power, and growth trends without the stub-period distortion.



✅ Bottom line:
The $2.11M gross profit in 1.5 months is actually quite strong when annualized. The raw per-share figure ($0.000345) looks weak only because it’s based on billions of shares and a partial period. If MTi sustains or grows this run-rate, AFFU could post multi-million annual gross profits, which reframes the story significantly.



Just for projection of future

Let’s build a pro forma projection for Affluence Corporation (AFFU), based on the MTi acquisition performance reported for 1.5 months in Q2 2025.



🔹 Step 1: Stub Period Results (from Q2 filing)
• Gross Profit (1.5 months): $2,113,602
• Operating Expenses (1.5 months): ~$39,226 loss
• Net Income (reported, including other items): $1,615,199
• Shares Outstanding: 6.7B (approximate upper figure disclosed)



🔹 Step 2: Normalize to Full Quarter (3 months)

Assume MTi maintains the same run rate:
• Revenue (extrapolated): ˜ $4.26M
• Gross Profit (extrapolated): ˜ $4.23M
• Operating Expenses (extrapolated): ˜ $78K
• Operating Income (before other items): ˜ $4.15M

If we assume “other income” (derivative gains, interest, etc.) was mostly non-recurring, then the core run-rate is best measured on gross and operating profit.



🔹 Step 3: Annualized Projection (12 months)
• Revenue (annualized): ˜ $17.0M
• Gross Profit (annualized): ˜ $16.9M
• Operating Expenses (scaled): ˜ $312K
• Operating Income (annualized): ˜ $16.6M



🔹 Step 4: Per Share Calculations

Using ~6.7B shares outstanding:
• Gross Profit per Share (annualized): ˜ $0.0025
• Operating Income per Share (annualized): ˜ $0.00247
• EPS (annualized, core operations): ˜ $0.002–0.0025

This is 7–8× stronger than the stub-period figure of $0.000345 per share.



🔹 Step 5: Key Takeaways
1. Run Rate Looks Solid: If MTi sustains this pace, AFFU could report ~$17M in annual gross profit.
2. Low Operating Costs: With very low operating expenses, the bulk of gross profit flows through to operating income.
3. Per Share Impact: Still tiny due to dilution, but materially stronger when scaled to a full quarter/year.
4. Watch Next Quarter: The September 30, 2025 report will confirm whether this stub-period run rate is sustainable or was a one-off spike.

Pro Forma Table

Metric
1.5 Months (Actual)
3 Months (Proj.)
12 Months (Proj.)
Revenue
$2.13M
$4.26M
$17.0M
Gross Profit
$2.11M
$4.23M
$16.9M
Operating Expenses
$39K
$78K
$312K
Operating Income
$2.07M
$4.15M
$16.6M
Per Share (Gross)
$0.000345
$0.00063
$0.0025

Caveat: This assumes MTi’s contribution is steady and does not account for seasonality, integration costs, or further dilution from share issuances.

Bottom line the true test will be the September Quarterly Report when the full quarter will be with MTi and OneMind together fully reporting