They currently have ~140k+ App downloads and 50k subscribers, but have already distributed a further ~100k SIMs to a network of ~250 distributors globally. These resellers buy the SIMs upfront for ~$5USD with 100MB of data included and then on sell them to customers and receive an ongoing commission for any data top ups their customers make.
This gives me confidence that in addition to organic sales by FRX, that the 50k number should increase, without burning too much cash.
Malaysia naturally is their no.1 territory globally, however they recently signed a $300k USD deal to give a distributor exclusive rights in Brazil so this may change.
You are correct telco's are becoming more competitive with their roaming rates, however as you identify FRX's labour costs are very low, and their customer base is diversifying further and further each day. This should insulate them against a price war, or any further legislation such a that in the EU for borderless data.
The awards they received back in 12/13 were for a different product (now defunct). It was an OTT VoIP app similar to WhatsApp, Viber and other failed ASX listed companies ZIP & NOR OTT Apps.
The X product was released in June 2016, and they got their pricing model badly wrong to begin with, so the majority of their users were acquired from March 2017 onward.
The reason for the pressure on the share price is that they have been doing a terrible job of keeping investors informed.
They were recently pulled up by the ASX after the most recent quarterly, to explain their cash flow situation. They had ~$900k in the bank and haven't yet reached positive cash flow.
They all but confirmed a CR in their response to the ASX, but provided no further update in their June Investor presentation??!!
I'm sure a lot of investors want to know when the raise will occur, and whether we will likely be able to participate?
I'm hopeful they can make it through this quarter and provide some great looking revenue figures before needing to tap the market, however the June update gave us very little detail.
@flexiroam Are you able to provide us with anything further?
FRX Price at posting:
6.0¢ Sentiment: Buy Disclosure: Held
