Ann: Appendix 4D and Half Year Financial Report, page-9

The $11m isn’t total expenses. They said that they expect “overheads” to reduce to $11m. Ie. Fixed operating costs. We also have to add in the Cost of Goods Sold (direct sales costs) to work out the total expenses.
The last couple of P&Ls I’ve looked at show a margin of about 48%, so the direct costs will be 52% of the operating revenue.
My concern is whether they can grow revenue to $22m while keeping margin at 50%.
The margin of wholesale and phones will be much lower.

I think they need a lot of capital.