The extra non cash debt that is added to 1.25 billion convertible bond is a fair market value number for the convertible bonds as for gap accounting rules. I think Blackberry could have set this up differently to not show this fluctuation in non cash dept, but it looks like it will show strong balance sheet benefits when the bonds are converted to shares. The reality is there is zero cash debt, but a owing of 125 million shares to bond holders..
Sentiment: Strong Buy
All they got to do is ride their bicycle to a machine after electricity runs out and top off account. The they hope the electricity gets turned on before batteries run out on their Z3s.
Looking at the last financial there was something about the company being able to end this as early as 2016. They also seem to be taking some non-cash charges each quarter against the full amount.
Sorry, don't remember all the details and don't feel like looking them up again.
" First, it’s no secret that we have a lot of customers there. It is the biggest BBM market globally. A massive number of Indonesians use BBM today, and the monthly active user count is growing by 150% annually. "
"(i.e., you buy a certain amount, and then when you run out, your electricity turns off). Without a service like BBM Money, you’d have to go out to a machine to make a payment and top up your account. BBM Money allows customers to do that from home or anywhere with mobile signal or Wi-Fi, meaning topping up electricity is as simple as topping up airtime minutes."