'Fundy_' pid='41948' datel Wrote:Tradestar, thanks for the clarification, but wouldn't NQ have had to report all reasons for the share dilution? Correct me if I'm wrong, but wasn't the only reason reported the vLife acquisition? This is how I came up with the number - reported stock value paid divided by share dilution reported. Assuming that they will report even more shares paid in the 10-F, then the average stock price for the acquisition would be even lower, unless they clarify that some of the dilution was for another reason. However, it's possible that in their 10-F they clarify the exact number of stock used which may differ from the dilution, so until then there is no way to know for certainty what the strike price on the acquisition is. I am a little confused on what you are referring to when you say that there is no way to know how much cash was paid though, considering they specifically state that they paid $34.4mm in cash on the 7-F (possibly over the course of multiple quarters, but that's still the exact price reported).
I would also ask for clarification on whether or not the acquisition of vLife was necessary for NQ Live. Considering NQ Live was finished prior to FQ3 and the acquisition was not reported until FQ4, it would seem that it was not necessary to move forward on NQ Live, but rather used to improve on the technology. Assuming the acquisition was required for, perhaps, legal reasons to sell the technology, then the amount paid would make a whole lot more sense, as NQ Live is certainly proving to be far more profitable than vLife ever was. However, if the acquisition was not necessary to use the technology, then I believe they overpaid by quite a lot given vLife profitability. As mentioned in my original post, this is entirely based on estimates, and we can't know for sure until we see the 10-F is filed, so hopefully that will provide more clarity on the situation. Thank you to admin, harry, and tradestar for the feedback.
I may be mistaken, but I do not believe they need to report shares that have not vested or hit their earn out targets. Otherwise, you would have a substantially larger diluted share count. The 20F, when its releasesd, will have various scehdules that go into detail the acquisitions and terms for all their material acquisitions.
Regarding the cash for the acquisitions,w hatever cash that goes out, has to show up on the statement of cash flows. NQ may have "paid" $35M in cash, but that does not mean they have actually spent $35M, yet. As soon as cash goes out the door, thats when you see it appear on the cash flow statement and affect the balance sheet. In this case, because there is not enough detail on the acquisition terms, its not clear if the cash paid is on an earn out structure or if it has already been paid in chunks (ie some in 4q13, some in 1q14, some in 2q14... etc). So again, speculating on the transaction, at this point in time, is fraught with a lot of assumptions and guesses.