The revenue comes from monthly customer receipts (subscription fees). A few suggestions on how this business can be grown.
1. Sometimes a new customer gets signed up but you do not see revenue from it immediately. It takes time before the subscription starts.
2. Upselling to existing customers (more tags) is a "warm" way to grow this business. An existing customer who has 100 tags open a new site and needs another 50 tags there.
Personally I think that CT1 should think of diversifying their business and provide not just tags but also IT services. There is a lot of money in that area and would open them a market to a lot of new customers who potentially in a longer term could become their target for the smart tags. IT services is very broad and you could pick up one small segment of the market (i.e. data centre management) and bring extra revenue from there to fund further growth of the tags.
And just like a few colleagues who expressed their concerns that there are just announcements but no actual numbers, I expressed similar concern some time ago. No business can survive on constantly burning cash. Someone even told me off that I should invest in blue chips and not start ups
My opinion has not changed though and I still want to see revenue growth and in a bit longer term profitability. Without that in a longer term, CT1 will simply close down or get sold to some larger business due to inability to fund itself.
