Ann: EN1 Q2 2019 Preliminary Results Material Improvements, page-403

Sorry, but i have to disagree entirely with you. We know that the gross profit margin averages out at around 40% So we know how much the company has to scale its revenue in order to turn a profit. Its simple really. Revenue*0.4 > OPEX
OPEX has proven to be $650K/Month although we have been promised this will drop further. For our purposes lets assume $650K. So that equals $1.95M/quarter. Which means the revenue for the quarter must exceed $4.875M to make EBIT positive. Its pretty simple really. Anything above this can be reinvested back into more advertising to grow the company. Other ways of growing the company are by equity raises (which we have been doing - but this is unsustainable due to dilutive effects). And also debt financing which we have been told is what is imminent. We know that at an annual interest rate of less than 15%, that the company can easily make a tidy profit by using this debt to fund revenue (because we make 40% - which is greater than 15%). But its better than that because we can recycle the funds from those borrowing many times in a year. So clearly using debt financing is an excellent way to grow our business.

Now back to your earlier point about the market not giving two hoots about revenue. I strongly disagree with you here. I would not care if EN1 didn't make a profit for the rest of the year. If Ted can double his revenue every quarter - which means $8M revenue is Q3, $16M revenue in Q4, this will really get the markets attention. The only reason why this wouldnt be generate a cash profit in the quarterly, is because Ted is taking the entire revenue/profit and re-investing it as COGS for the next quarterly which will in turn generate even more revenue for the following quarter. Growth business is what we should be aiming at here, not necessarily making a cash profit. This is a grab for real estate until we are a behemoth in the programatic space.

Of course at any stage he can turn off the tap on growth with such a model and be making a massive NPAT.

Its a little nuanced but i hope people understand the value of a rapidly growing business even if at the expense of short term cash profit.