I would love to understand where you came up with enough money...

I would love to understand where you came up with enough money for 2 years operation. a) i think this is completely incorrect and b) you are ignoring the additional (significant) spend to facilitate growth.

At June 30, there is about $250k in working capital. The August CR brings working capital to around the $3m mark. And i believe the FY15 cash from tax incentive will come back around Oct. taking available cash to $4m.

Based on FY15 spending alone there was approx $6m in expenditure. They receive approx $1m back in R&D Tax incentive. based on FY15, this equates to about 35% back on R&D spend. So FY15 was a net deficit of approx $5m.

To increase sales, reach and technology enhancements across different platforms and jurisdictions, there is plenty more spend to come. don't think costs will remain fixed to grow sales. A gross margin of 70% is very promising, making it very scalable.

There is about $1.5-$1.6m in employee costs ($650k in marketing, $500k in R&D, $420k in admin) I would expect this to double over the next 12-18 months to cope with additional sales. They will continually need to re-iterate and enhance the product, the good thing is the R&D on this spend will come back at 35%.

So, even if we hit $1m in sales in FY16. I would expect the loss to be greater than FY15. But this is ok, it's ayoung business that needs to spend on brand, marketing and technology. The key driver to the share price at this stage is sales momentum and nothing else. i would expect another capital raise around March-April, to see them through to the end of the calendar year (with help from R&D tax incentive).

If they can show in FY16-17 they can improve sales to $2-$3m then they will have a scalable business and expenses should stop growing, meaning more sales to the bottom line.

if this business had cash to last 2 years it's SP would be trading 20 times what is now!

If it does get sales momentum, the SP will rocket. i wouldn't even consider making a profit for the next few years. it's all about market penetration and sales. It could very well be a slow grind.

we just need to see that sales momentum.