I think most people understand your book value analysis.  What you might be overlooking is that most companies on the venture are in the same boat (negative working capital and poor balance sheet), that's what makes them speculative and risky.  The investment is based on potential. 

Sure, the legacy business is horrible but no one is here for that and neither is management, they were smart enough to see what was coming, they could have easily been the lazy and big money spenders that some make them out to be.  They have a lot of meney in and just added more.

Cash flow positive by Q2 and that's without any new contracts.  Reduced cost of debt will mean even more free cash flow.  They've spent a lot of money on infrastructure so book value doesn't mean much to me.  The real value is the fact that any other player can come in now and have a turn key operation.  More value will come when they build out their network and utilize the legacy relationships to roll out a POS network and the ReCash network.  They'll partner up with many prepaid card programs to give them access to this network in exchange for a fee.  Their technology is and infrastrucure is difficult to value.....who else has their POS capabilities?

 

Many new contracts to come, but yes it's speculative and might not look like a fortune 500 company you're looking for, there is a reason why its a penny stock right now.