I think you are quite right Holla costs are variable to some...

I think you are quite right Holla costs are variable to some degree,

However the cost of acquiring a WP user that NOR keep talking about has a direct relationship to the number of new users acquired per 1/4, acquire users through marketing more = spend money faster, acquire new users slower and less revenue growth, less network resources used = catch 22.

Though I am not sure if less network use is good or bad, I don't know if it casts the same however many users, or cost more if more users.

Another variable cost as you point out is R&D, which may save the day if enough has been already achieved.

Plus there are fixed set costs like wages, rent etc...

I do suspect they NOR wasted a great deal of marketing money this 1/4 buying Android users only to have them try a product that did not work, which in turn created bad word of mouth marketing and stalled Android uptake

As Android uptake was initially at 25 time that of IOS (it should have been x 5) for the same amount of time from release,
that is until the network fell over during those people trying the app for the fist time and Xmas arrived.

Those people and all users at the time need a PR email with an apology, some free talk time and an assurance the problem is now fixed.

I would expect the spend to be less next 1/4, or the spend if the same to at least buy many more converting customers, but the pace of the revenue growth is an issue as it has taken 6 months to get 1.9m run rate, but all indications are 10 - 14m P.A spend, with 6.5m left in the bank and last 1/4 spend being 3.3m.

The pace of revenue growth is an issue, compared to the money left in the bank.

I think Android needs to be given a decent relaunch with no network problems, but that is now a gamble with the cash on hand.

Unless Nor are confident new updates will have a big positive effect on revenue growth, from a preserving the SP point of view I think Nor would be better going into a trading halt and doing an institutional now, to stop speculation causing an sp slide, then having to do a CR much lower later, as speculation being rife RE how much longer cash on hand will last, will do more long term SP damage.

I don't think a rights issue would work now though due to the way NOR let institutions get shares for 8c, when the price was 16c, so they could sell the price all the way down to 8c and get their money back prior to the holder issue at 8c, that left a bad very bad taste in a lot of holders mouths, as did the very big share sell down pre announcement.

Who knows android may kick in with languages release, other pending updates and new apps might just save the day.

Anticipating the cash burn rate based on known costs and adding estimated cost of acquiring each user, led me to anticipate speculation of a CR and prompted me to sell in the 8's as did the selling starting to build up pre quarterly.

RE cash on hand v revenue growth v cash burn rate, the uncertainty is still keeping me out for now.

One good new app update announcement could change everything, but it will need to be a game changer and show big growth in revenue I think.

Regards Mark H