Fixed operating costs are approx $600k / month, so $7.2mil per year.
Let’s say GP is 35% of revenue, more conservative than using 40%.
We need $20,571,429 revenue to break even. (20571429 – (20571429 * 0.65) – 7200000) = 0
$20,571,429 / 365 = $56,360 revenue per day on average over the year is break even, we’re currently at $53,548 per day for August very close to break even.
If revenue scales to $80k / day average for a year, based on the above logic you get $3,020,000 surplus. If we end up with 1 billion shares on issue, $0.0056 EPS, PE multiple of 20 share price would be $0.059. Change revenue to $100k / day and the SP jumps dramatically.
Challenges in the near term are cleaning up the BS (more dilution), getting capital and the cost of getting capital, and revenue growth. Ted has been cleaning up the BS, programmatic revenue has been growing, and in time the debt facility should arrive. Plenty of upside if this gets on a roll. I understand there's different ways to view this company, but being tech based once this scales and gets on top of the BS and lack of capital issue, I think the upside is very favorable. The revenue to date is not a true reflection of the potential here, you should know that.
AUD
1
Revenue (Annual)
$36,500,000
2
Margin
35%
3
GP
$12,775,000
4
Fixed Cost
$7,200,000
5
Profit
$5,575,000
6
Shares Issued
1,000,000,000
7
EPS
$0.0056
8
PE ratio
20
9
Potential Fair Price PE
$0.112
EN1 Price at posting:
2.2¢ Sentiment: Buy Disclosure: Held
