Spin and omission of key details.

Growth of 16% on last year, which was down 27% on the year before is not a good result at all.

This implies net (growth) is -11%, and on the stripped down base number comprising of only Australia and New Zealand sales.
They have deleted UK, EU sales in the base numbers to make their reporting look good.

Reference period is just Nov 20 to Dec 2. Just 12 days. What happened since then? Why the omission?

Unless their growth is much higher than customer churn, they are going backwards. Company previously stated their customers have a 3 year life span at best, which implies a 33% churn rate.

So losing 33% every year, and reporting growth at 14% men’s they are actually doing backwards 18%.

Company fixed cost structure too high. Too many expensive management headcount in Sydney. The way the model is structured now, income from sales will never cover costs, there is no path to profitability.

No re-confirmation today of cashflow positive in next 6 month reporting period.

Last quarter burned $2m in cash.

The 4C will be revealing.

Another capital raise in March-May next year is unavoidable.