I thought there was a rule that a company has to be profitable...

I thought there was a rule that a company has to be profitable to list? I'm reading the prospectus, its made $220k in revenue HY16. There's been depreciation of 900k, but it still turned in a loss over $1.25m.

I simply don't get it. Some guy who ran some company and his next door neighbor have a great idea, find someone else to give them money. And that's worth $100m? Built on the model of people who can't pay now but can progressively over 2 months? Micro loans for a $200 dress? But its fine because they have a you-beaut proprietary profiling software.

What could possibly go wrong