Upside, page-27

The thread is to explore the possible upside

EN1 has proved to my satisfaction a number of things:

1) given they are reporting revenue positions twice per month - I am feeling confident that the revenue story is moving ahead as per the updates

2) given the model of seasonality of revenue - (H1 34% / H2 66%) - that has been reported many times over the past 18 months - and being able to compare that to reported reality - I am comfortable accepting the model

3) given the revenue position is seriously close to breakeven on a month by month basis ($2mill would see to that) - and that margins are stable around 35% - I am confident they are not about to go bankrupt

4) given they have clearly demonstrated net0 can entice large NEW clients - as reported just recently - and have reported further NEW wins imminently - I am confident they have a pathway to fast-track new revenue streams - making the possibility of bankruptcy even less likely

5) I think everything that EN1 said would happen - over the last 8 months - has happened - so I am comfortable accepting the updates at face value

6) I acknowledge we need further clarity on net0, legacy, the moment of breakeven...I am confident that these will get significantly clearer by the end of Q1 - as further revenue news comes in and we see legacy settlement switching to cash mode

7) of course any business can suffer from a black swan event - so one should always be vigilant - but this story is looking very compelling - lots of upside / rapidly diminishing downside

8) and don't forget - EN1 could have an unexpected positive event too - acquisition / client win / product enhancement / ...