Huge Operating Income Loss - Why?

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I'm hoping someone may be able to shed some light into the following snippet taken from a US company's financials. Any suggestions why such a large operating income loss compared to relatively small revenue could have been absorbed by the company? The company was established in 2010 and acquired for $8m earlier this year.

Revenues $2,565,000
Operating Income (Loss) ($39,137,000)
Net Income (Loss) ($39,125,000)
Balance Sheet 2011
Cash and Cash Equivalents $1,331,000
Property, Plant and Equipment $607,000
Other Non-Current Assets $989,000
Total Assets $64,542,000
Current Liabilities ($59,540)
Total Liabilities $1,211,000
Stockholders Equity $64,542,000
Net Assets $2,534,000
 
The company in question provides SAAS in the gaming industry.

It seems unlikely this was an investment in hardware or R&D.

Any ideas would be welcome?

Thanks
 
Something wrong with Balance Sheet figures - the total assets are given as $ 64,542,000 but the components do not add up to that

As a supposition, the company could have bought another company for $60m, most of which might have been Goodwill or immaterial asset, and then had to write most of it it off giving a loss of €39m
 
Thanks JPD and well spotted! The figures were adjusted slightly so as to avoid any potential connection to the actual company - figures are near there original amounts.

A company takeover makes sense - the company was formed in 2008 and currently has only 6 employees after being bought over by a large gaming multinational last year. The company received over $2 million in Series A funding, there is no other information available on new funding so if the company were to have bought over another firm it would have been backed by the original investors or another group?

Any other possible reasons for such a large loss?

thanks
 
Had considered that but thought it seemed very excessive!

If the company invested over $60m in R&D and were trading at a loss of $39 with revenue of $2.5m why sell for $8m?

We are researching this space and the while our R&D will require a large investment it seems hard to fathom the costs could be so high.
 
It's not that unusual for a start-up company to very little expenditure compared to their revenue. They spend huge amounts on R&D and marketing but get very few sales.
 
Thanks for the replies.

The nature of the business would require some R&D to get their product to market but every industry expert we spoke suggested a maximum figure of $2- 5 million in R&D using the latest technology and expertise.

It may be the substantial loss was absorbed in R&D but I hope for our sake this was not the case...
 
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