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  5. PAY: Hi 5i Team - I am trying to develop a plan of action over the next couple of weeks regarding Payfare [Payfare Inc. Class A Common Shares]
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Q: Hi 5i Team - I am trying to develop a plan of action over the next couple of weeks regarding Payfare: Sell outright, Hold, or Add at around the 2 dollar mark. Your answers to the following questions will help.
Is there some way of finding out how much of their revenue comes from Doordash.
Do they have significant relationships with Uber and Lyft.
What other companies do they do business with.
How strong is their management team to guide them through this downturn.
What are insider holdings and has there been much activity in the past six months.
Are their cash and cash equivalents holdings approximately $100 million.
Could you comment on their recently announced strategic review process. Is this a positive sign.
Thank you.
Asked by Rob on October 04, 2024
5i Research Answer:

Approx. 50% of revenue was from Door Dash. PAY has relationships with both UBER and LYFT. Looking through press releases these have not been discussed at length by PAY, but certainly relationships/contracts exist. Other than those noted here, PAY does not disclose a lot of customer names in its documentation. We would consider management strong enough to handle the current challenges, but to be fair they are also the ones that got the company into the mess. Insiders own 11% (Bloomberg) and there has been minor (net) insider selling in the past six months. Cash at June 30 was $82M. The review is not necessarily positive, but could go either way. Losing a main customer is a big blow, and it will be challenging for investors to re-value the company. We would not necessarily view it as hugely positive  but it could result in new partnerships or even a sale, so there is always a chance of positivity. But it could also be a case of the company hiring advisors in a case of 'what the heck do we do now?'.