Ann: Embedded Network contract with R Corporation, page-6

re: Ann: Embedded Network contract with R Cor... Until we know how much of this "revenue of $2.5M over five years" flows to EBIT, it is simply impossible to value INT. I assume they split the revenue 50/50 with the developer so that leaves INT with revenues of approximately $250,000 per annum from this deal. What's the EBIT on that $250,000? Once we have an asnwer to that question, we can then do a more accurate financial model to try and come up with a valuation.

To justify say 5c per INT share ($100M market cap), they would need to be making EBIT of approx $10M. Therefore how many of these types of deals do they need in order to generate that sort of EBIT? This also assumes no further dilution and therefore a cash payout of the $2.1M note due in January. I just cannot see how they pay out the note without raising further capital. Perhaps Belgravia will roll it over for another 12 months?