The deferred revenue will just be realised at the turn-over of...

The deferred revenue will just be realised at the turn-over of the client subscription period. For most of the clients, it'll be every 12 months to 3 years. So, in theory, an increasing deferred revenue is a good sign, as it indicates an increase in long term subscriptions, rather than try-and-run style one-off payments.

Of course with an increase in deferred revenue, you would expect an increase in the cash balance in the half yearly, but it appears they've invested the gross-profit of the product back in to developing the product for growth. So the JCurve Solution generated a gross profit of $1.8M for the half year, but all of this and then some ($1.9M) was poured back in to product development (expenditure outside of general sales costs).

So management must be particularly bullish on this product to put so much cash in to its development. If they wanted to, they could sit on their hands, run a skeleton team, and book a fair chunk of that gross profit as bottom line profit. The board are making a big statement to invest so much of their cashflow back in to the business for development, I'll give them that.

I like the approach. Live by the sword or die by it. Most shareholders are here to make a 20 bagger, not a 10% overnight gain. Whether its prudent or not will become apparent this year imo. Potentially a big year of growth if they get it right, now that they have a stable platform to launch from.