I think part of the reason for the share price drop is linked to...

I think part of the reason for the share price drop is linked to Smoothwalll appearing to contribute minimal growth so far, although as I discussed above, it seems as though the growth has been downplayed up to this point.

It’s also worth considering the overall numbers of schools signed by Smoothwall since it was announced that the company was acquired in August. In that update Family Zone had reported that up to the end of March, Smoothwall had just over 12400 schools with EBITDA of $7 million.

In the most recent update, total combined schools on platform was 19278; of which 5513 are serviced by Linewize (including POC). This means Smoothwall now has 13763 schools on the platform (1928-5513).

Since the end of March, Smoothwall has gone up from approximately 12400 to 13763 schools, which is a total of 1363 new schools contracted. This is very impressive for a 6 month period as it means that they are still growing rapidly and continuing to acquire market share; which is key to the company’s vision/strategy.

Using previously existing figures of revenue per school when Smoothwall had 30 million ARR and 12400 schools signed, then the combined value of the 1363 schools they recently signed up would be $3,297,097 ($2419 per school).

I’m not sure if Smoothwall, is earning more or less on average per school these days but if I’m not mistaken we can assume that at least a significant portion of this estimated revenue will be reflected in the upcoming quarterly report.

It seems obvious that in terms of schools continuing to join the platform, Smoothwall is still growing in numbers at a rate that is similar the Family Zone/Linewize. When you factor in their existing market share, I think this indicates the tremendous potential of this company as a whole. If Family Zone are able to show the legitimate capacity to generate revenue through the cross selling of products and diversification—and it seems they are on that path—then eventually this should be reflected starkly in the bottom line. I think this could happen much sooner then many investors are factoring in.