Ann: Annual Report to shareholders, page-6

They haven't promoted the stock very well, with stupid decisions like limiting the user number updates till they release the quarterly's, which mean the stock has never been able to attract new investors (which you need to do post IPO) to the stock, as some of the best news / progress is wrapped up in the QTRLY when ever other company is announcing how they are tracking during QTRLY season and it gets lost in the wash of the 9SP QTRLY.

Case in point, announcing we reached 50,000 users (48% Q on Q growth) in the last QTRLY, it was dot point 8, that is right, they had 7 more important points to make before discussing this milestone and user growth. The other points were important as well, but you can see how this important stat around user growth gets lost pretty quickly in the detail of the QTRLY!

I think this has been mismanaged since the IPO, they probably brought it to market too early and the reality is the Directors don't appear to understand how to keep costs under control and could be managing the cash on hand much better than they are.

Looking at the annual report in detail, you only need to look at the Directors costs and Related Party Transactions to understand that, then ask yourself these questions:
- Why do we continue to pay Thomas Power consultancy fees for his social media company, we have paid him $225k and owe him another $51k.....this is on top of his Director Fees.....don't we have him as a director to provide expertise in this space.....but then he charges us through the wazoo on top for that privilege......you only have to look at some of the social media to realise it is pretty low quality (example to follow). Aren't RBC and Barclays doing most of the user recruitment themselves anyway, what the hell is Thomas doing?
- Why are we paying our independent director Wendy Webb $30k (paid)+$28k (owing) for consulting services? Isn't she meant to be an independent director, why is she working for the company? What services is Wendy providing?
- What do we need to pay the Chairman for, that he is undertaking out of his existing role that required an additional cost of $49k (paid) + $36k (owing)? Great leadership right there.....doubt he is too concerned.
And good to see we can't find a recruiter that isn't linked to the co-founder!

  


And that is before you look at employee benefit expenses, which look to be out of control, the table in the annual report shows that this needs to be reigned in significantly.

What are Estall and Grant doing to reign in the costs and conserve cash? They have the most to lose and should show some leadership by taking a pay cut and then applying this across the board and cutting all non-essential expenses (ie: Director consultancy fees!!) to ensure this business has a future.