Completely agree with your analysis. I am very intrigued exactly how US works. I assume they are exactly the same terms Packages $1000-$12000. They do say that the packages are across all 3 pillars. Perhaps this was where Zeta and Tipsly App were to provide huge selling points.
US pay the full product cost so perhaps the 24% they gave up in Australia covers off the video shoot + a commission (Lower rate Interest) to the sponsor?
For instance - Sponsor (Lender?) Provides $5M. If they sign conditional contracts for agreed values say $5M they receive 1/12. They then go unconditional for 50% 2-3 months later. Swapping in and out customers.
So they receive $416000 per month for 3 months whilst conditional which gives them the money to shoot the videos. They go unconditional 50% - So they now have signed up $2.5M unconditional contracts (Real Revenue) and potentially have to refund $624K (50% customers that don't accept ( 3 Months of $416000 @50% x 3 Months).
You have Asset of $1,876,000 ( 9 x 208K unconditional contracts )and a liability of $624K (unsuccessful 50%)
No Risk this way whereas in Aussie Ops - big risk due to receiving all the money up front.
US model would provide visibility of coming cash crunches whereas Aussie market is completely blindsided should acceptances slow.
BIG Price at posting:
$2.22 Sentiment: None Disclosure: Held
