AJX may become capital constrained as it ramps up production, page-40

BKZ..Just saying Its a double edged knife.
On one edge, CR will be a necessary step to survive and grow..faster the growth, more the requirement in the foreseeable future so there is risk of dilution, deterioration of SP and EPS.
On the other edge, as with many start-ups, profitability is going to be extremely low with set up costs for each new customer outstripping revenue. This has been very strong in evidence in the half yearly.
The quarterly, which should be released by the end of April, IMO will show a further deterioration of working capital.
With AJX, SP has been way out of step compared to financials, and correction started in Sept last year, from a high of around $1.13, and it will keep dropping to match fundamentals.

The problem with AJX revenue model is that each customer will have different start up costs " inventory costs for new customers" as Nick said regarding the half yearly cost overruns, so there is a risk that these start up costs may be quite unpredictable in its $$ value, making it very uncertain to predict the breakeven point for each individual customer...quite in contrast with for example, a company which manufactures its own products, and know exactly its selling price , and margins.
This exposes AJX financials to highly variable and unpredictable profitability, which is another big risk factor from an investment point of view.
As such, even though the basic products are good and marketable, AJX could take several years to actually make a profit..along with further dilution in SP

All IMO
DYOR