Totally agree with the opex/capex discussion above.I believe...

Totally agree with the opex/capex discussion above.

I believe that corporate costs (directors CFO, listing costs etc) are around $1m. These should fall sharply as a ratio as, hopefully, sales within the business units increase.

The costs of acquisition, due diligence and possibly share payments (i believe this may be the value of options issued, based on issue price and expiry price, using a pricing model like Black Scholes) are non-recurring. The cost of R&D these days are written off through the P&L and not capitalised. One would hope that they produce a product that has value, but right now are arguably not operational.

From an operational viewpoint the business, after taking out corporate and one-offs would say be (sorry doing this by memory of what I read this morning) in the vicinity of $1.25m - $1.5m. This is fairly consistent with the margins on the business (especially Decipher Works) quoted when we first purchased it. C10 to short a period to tell.

Naturally, to reach any real conclusion would require good segment reporting, which hopefully is provided in the annual. I suppose the trick is to grow at the individual business margin to shrink the corporate ratio. If so, the sales numbers needed to produce $5-7m pre tax profit for example shrink massively. Personally, I believe they can get there with less than $20m in sales, but that is a wild guess and there is no guarantee or guidance that we will trend that way as well.

Cheers