Crowdgather (CRWG) Shares Rise 93.80% in One Day

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Sorry, late to the party.

I doubt CrowdGather makes money on this deal. Maybe they break even on the pbnation sale. They get the cash portion of purchase price back, so they only lose the value of the stock*.

    “The total purchase consideration for the PbNation.com site and assets is up to $3.2 million, consisting of $1.4 million in cash, 1,149,425 shares of the Company’s restricted common shares, and certain additional cash and stock compensation totaling up to $800,000 if certain monthly website visitor traffic milestones are achieved.”

    “The number of shares issued was calculated by dividing $1 million by the Company’s 10 day volume weighted average share price of $0.87 per share through Friday, May 20, 2011.”

The market gave these latest financial maneuvers a big yawn - the stock price is still $0.10. I wish I knew how Sanjay keeps getting people to give him money. If I had the same business model I would be living in a Samsung refrigerator box underneath an I-40 overpass.


Tom

* about $86 = 0.03 ounce paper weight per share x 1,149,425 shares x $80 per ton scrap value

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Admin

Posts: 11071

A big yawn? Not too sure about that. Maybe a little lagged? Reserved? Cautious?


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Admin

Posts: 11071

The latest form 10k is a bit woeful.

Some highlights:
Additionally, we recorded a $1,408,985 loss on the intellectual property relating to Adisn, Inc. offset by a gain on the disposal of assets relating to the sale of certain forums. During the 2014 fiscal year, we had been developing a solution to create an ad serving marketplace based on the technology originally purchased from Adisn. However, due to strategic changes in the 4th quarter of fiscal 2014, we discontinued the marketplace project based on Adisn's technology, and focused instead on the merger with Plaor and the development of social casino games, some of which will be integrated onto our forum network.
We are still focused on fully monetizing our forum network through advertising, but we will also leverage our user base to engage with Plaor's suite of social casino games. We do not anticipate using the Adisn technology as part of our go-forward strategy.

Net Loss. For the year ended April 30, 2014, our net loss was $7,725,770, as compared to a net loss of $2,782,451 for the year ended April 30, 2013.

As of April 30, 2014, we had cash of $546,158. We estimate that our cash on hand will not be sufficient for us to continue our current operations for the next twelve months.

Through our Merger with Plaor, we believe will be able to offer additional engagement and retention features to both our forum and our game user bases. These features may also facilitate new channels of user acquisition as we cross promote and integrate our forums and our social games.

There is more about this leveraged exposure in this article.

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Posts: 11071

Has it really been a year since I last commented here? That was probably the last time I looked at anything.

The current situation can be summed up in a one-liner:
Our auditors have questioned our ability to continue operations as a “going concern.” Investors may lose all of their investment if we are unable to continue operations.
Source

Q Accountancy Corporation wrote:As discussed in Note 2, the Company has incurred recurring operating losses and has an accumulated deficit. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans in regard to these matters are also described in Note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Source

The whole Form 10-K makes for woeful reading. If things continue in the manner they have been, this company does not have a year left in it.

I personally could not care less about the company. It was an interesting business model, which mostly was killed by the rise in mobile devices. The damage could have been less though. What I do care about are the Users. I specifically mean the forum administrators, moderators and members.

There were unkept and subsequently hidden promises of being able to back up their data. Misinformation was given, any time the question was raised. Interestingly, their competitor ProBoards did take steps to allow a member to back up their data. I believe this is possibly the best compromise that could be made. My suggestion to all Users is to press for the ability to back up their data. It does not matter how, it only matters that they have the security of having a copy of their own data. There is no need to do anything with it. No need to run off. Just rest assured that if the worst did happen (their forum host disappeared one day), that they would be able to continue near enough where they left off, only elsewhere.

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Posts: 179

So happy I left Yuku. Best decision I made.

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Posts: 11071

dawgstudent, would you care to share some stats? Anything relevant: before, after, combined or whatever. If not publicly, I would really like to see how things have gone for you. There are two comparisons I want to make (for myself at least): How forums in general have reacted over the last couple of years and how yuku has performed in general over the last couple of years.

I recall you once commenting that yuku was no longer in the top 2,000 (was it?). Today, it is ranked 4,671. Interestingly, ProBoards ranking almost mirrors it and stands at 2,131 today. (Both according to Alexa.)

As an aside, how are you finding ad revenue trending? This may be advertiser specific but I am finding it takes 10 mobile clicks to equal 1 desktop click. Similar ratio for CPM.

Posts: 478

dawgstudent wrote:So happy I left Yuku. Best decision I made.


I did the same! ;)

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