scalability, page-6

The business model is unlikely to cover costs and we dont know the break down of the numbers.
Work backwards from a min $5m pa burn rate and figure out what their margins are and you can roughly see it will need hundreds, if not a thousand plus users to break even. If they sign 75 per month (a big maybe and how long to do that) you can see they are seriously under capitalized.
If you start making announcements of $375k revenue with no breakdown of the true numbers, its almost irrelevant. You cant just say its $25k per user. (it would be over a 3 year period and what component is theirs to keep) That announcement suggested they had signed up 15 users in a week but 11 were already signed some time back and were rolled over from Telstra. The additional 4 within a week is a long way short of 75 in a month that they want to do. That is only 16 new contracts per month at that rate as the older users are not many to start with.
CRO owns the Flashconvert but they promote 5 software packages on their web site. This means a lot of this so called revenue is going out the door to other companies. The true margins over 3 years is what counts and you need a lot of clients to catch up with $5m pa burn rate. I don't think there is enough info for anyone to make an informed decision. Who really knows.