Thanks LT First revenue milestones kick in at US$7.5m ... check...

Thanks LT

First revenue milestones kick in at US$7.5m ... check again! We are very mindful of not over-spending, the quarterlies that we have put out to date (Dec-16 and Mar-16) both include significant one-off costs associated with the IPO. They do not reflect the run-rate costs of the organisation. We are a business that has had customers and product shipping from the day we listed. People in sales, marketing, finance, supply chain, quality control, engineering, R&D, plus the ASX board and listing costs. We have sold c. 14,000 units in total that we continue to support. Pulling back on marketing whilst trying to expand is makes it very difficult to drive top line growth.

Justin and the team at NUH are doing an incredible job with their launch and expansion. As you can see by their raisings ($14m in the last 3 months), this requires $$ to execute. I also haven't seen them (and many others) publish revenues in any announcements, so not sure of the parallel there. I do follow their story as there are clear similarities, and I actually looked at NUH well before it listed! So have tracked it a long time.

Distribution agreements in retail typically do not come with revenue attached, the first step is agreeing contractual terms (price, payment terms, returns policy) with the distribution/retail partner, and then "selling in". There may be minimum order quantities but these are typically not able to be disclosed the market due to confidentiality reasons. Hopefully that clears things up a bit on the business model for these type of businesses.

I will organise a webinar in mid-August where these questions and more can be answered.

Cheers
Ryan