Facedrive changes it's name now it's time to change it's CEO.
On May30,Facedrive (now Steer Technology) released it's Q1 2023 report and it was a bad dream come true.It had the same illogical accounting as in the past but it also showed an accounting profit and the share price went down-not up.It sold off a part of one of it's subsidiaries and declared a $30 million gross profit.However the badly organized quarterly profit did not show shareholders the net profit.But Yahoo Finance,a well respected website, shows STER as having $.05 e.p.s.They did estimations and calculations that STER did not do for it's shareholders.
Facedrive needs to Streamline it's Operations
Facedrive (now Steer Technology) has been listed on the TSX for a little more than 2 years.It has produced net losses for every quarter except the last one.One of the main reasons is that it made a number of small acquisitions.Management gave shareholders little information on each operation.It is clearer now that all of them appear to have been running losses.Now their core operation (the B2B commercial food supply) is growing rapidly and showing increasing revenues every quarter.And they are starting to sell off some of their subsidiaries.Conceivably selling part or all of several subsidiaries could produce capital gains for several quarters.While at the same time streamlining it's operations.This blog believes that this is a capital idea. 
Esoteric Expenses
Steer Technology is in fact starting to streamline it's operations.But more of it's interesting but unprofitable subsidiaries must be shred for a capital gain.This may eliminate the unprofitable Steer operation (ride sharing) as well.Facedrive will then become a B2B wholesale and retail food business.This will allow Steer Technology management to focus on it's core business.And this will almost eliminate some of the more esoteric expenses like Research and Development, excessive depreciation charges and expensive impairment charges.
The Next Quarter
A couple of quarters ago the CEO changed the name from Facedrive to Steer Technology.Thus indicating the direction he expected the company to go towards.But in fact the company called Steer is not and will not likely be the main driver of revenues.Wholesale and retail supply of food produced about $14 million in each of the last 4 quarters.And now with a licquor licence in tow, this blog expects revenues will hit $15 million in the next quarter.
The problem will again be the declaration of esoteric and imaginary expenses that that will produce an accounting loss and maybe a cash loss.The CEO cannot stop putting in $2 -$3 million impairment charges and esoteric charges like research and development charges.STER will only have a profit in the next quarter if once again an unprofitable subsidiary(like the STER subsidiary) is sold for capital gain.On the other hand if a subsidiary is sold then this will be the second consecutive profitable quarter.Shareholders (like me) will be asking for a new CEO if the next quarter is not a good one. 
Dale Mcintyre is a freelance writer that chiefly works for Zacks Research and Marketbeat.com and occasionally MotleyFool.com
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