pe2023, I respectfully ask that you refer to...

pe2023, I respectfully ask that you refer to http://investor.flexiroam.com/, and go to the trouble of reading their IPO prospectus, before making any further ignorant or borderline slanderous posts. FRX's prospectus in particular is one of the more transparent & informative documents released by any ASX listed organisation that I have seen.

That said, I understand your logic, at a glance it seems to good to be true. How can their 4C show them having 10x the revenue of NOR & ZIP with only 800k subscribers? By  the way your calculation here is incorrect. FRX don't report 'annualised' revenue that's a NOR construct. ZIP have confirmed $6m in sales for the half year. Yes, the 4C reported just under $4m in cash receipts but, even if you were to take this figure, they re growing at a fair clip so it seems unlikely they would flatline for the remainder of the financial year and reach only $8m.

The simple answer to the mysterious additional revenue is that FRX are not simply an 'app'. They have been in business since 2011, and have a range of various products. They built up a huge network of travel agency resellers, they have brick and mortar outlets at airports and have done substantial multi-million dollar wholesale deals with companies including Air Asia. (The terms are listed in their prospectus).

If you look at ZIP's 4C, you will see they have another revenue stream "Aussie Sim" which is in some ways similar to that of what Flexiroam offer in that it is physical, or not an app. ZIP's AussieSIM revenue is far less, but in the context of their revenue it is still substantial. I guess you could argue that NOR also have another revenue stream with CORONA, but really it is just a different distribution model to that of their app.

If you read the recent announcements and earlier posts after the most recent 4C, you will see a few were puzzled that their revenue really trailed off in Dec. It seems as though a whopping contract was signed prior to this (I suspect that it maybe similar to the Success Resources agreement which expired in June 2015 and was valued at RM6,000,000) which left approx $100k revenue for Dec, which probably gives an idea of their underlying 'app' revenue, and certainly would be more consistent with that of NOR & ZIP.

As for your comments regarding the integrity of management, I note that the directors hold a significant portion of the company and are escrowed for another 18 months or so. They have enough in the kitty to see them through 10+ quarters of current rate of cash burn without need to do a CR. The CEO is on $120k P/A for crying out loud! These guys have their goals 100% aligned with their shareholders.

ZIP's management are up for a windfall based on a simple download metric. Looking at their quarterly, if I was invested I would be extremely concerned that whilst management are burning cash to hit download targets, that they may well need to raise capital. If they trigger a CR they could put their SP under pressure which in turn could result in their oppy's being out of the money. That would be a disaster for current holders.

NOR have a similar cash balance to ZIP, but it seems many weren't impressed at how their last CR took place. They are burning cash quite quickly whilst still improving their apps. It also concerns me they are handing over 30% of revenue the the app store!

What I find interesting is that even at this level of revenue, FRX are not profitable. That would concern me if I was holding ZIP or NOR, because they are just sooooo far away in revenue terms. I'm taking the view that FRX are trying to transition their lower margin bricks and mortar/wholesale  revenue into much higher margin app revenue. I'm also of the opinion that as they are based in Malaysia, their wages bills will be substantially lower than an Aussie company & that they will perform better in Asia (certainly in bahasa speaking Malaysia & Indonesia anyway).

I hope this clears up the mystery for you, I held off on buying FRX for a long time because I thought it was too good to be true as well. I believe the reason they are undervalued compared with ZIP & NOR is because noone knows about them yet. Look how many views there are for each companies 4C announcements on HC. Look at the daily volume.