InitiativesIntercompany Cashflow Optimization

Intercompany Cashflow Optimization

Up until 2025, Datopian had a limited intercompany policy that only covered costs of specific Professional Services and H&S projects, Management and BizDev costs. This was not sufficient to bring back enough cash to Viderum Inc from subsidiaries to allow the entity to pay for majority of group costs and the entity was constantly under cashflow pressure and forced to take on intercompany loans which are fine but the entity could not recover cash to ever payback these loans and implied potential regulatory and stakeholder risks. First steps to fix were taken at the beginning of 2025 when a new category of expenses were added to the policy - project investment. While that helped, it was not sufficient due to continuesly decreasing business in the US and hence lower cashflow from clients for the entity. Therefore, a major revamp of the policy was executed in Q1 2026 with the addition of most categories of expenses - HR, Finance * Ops, SRE and Software expenses.

Active Projects

Why this exists

We want intercompany transactions to support Viderum Inc cashflow enough so that the entity is able to sustain its role as cost center and not have to rely on intercompany loans to pay for operational costs. We also don't want to pay unnecesary corporate taxes when the group is not profitable on consolidated basis. This has been the case in the past for Viderum Ltd. We also want to limit accumulation of cash in Viderum OU where we would have to pay tax if we need to get that cash out of there for some reason.

Current priority

Consistently monitor effects on cash and profit/loss per entity of latest changes to intercompany policy and act if changes don't produce desired results.

  • #34 Monitor effects of updates to Transfer Pricing Agreement
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