I consider $4.5m great for their first full year of sales last...

I consider $4.5m great for their first full year of sales last year. Doppler Labs needed $70m. Nuheara have only raised $20m since going public and have reached the same heights if not surpassed Doppler Labs.

You have to assess the situation holistically. At the moment, they have one product available to consumers.With a growing product range and a company which appears to be growing in the right direction.

They need to burn cash to have any chance of growing. The recent two staff hires for sales didn't come cheap. Secondly those two hires won't made because Justin and David were simply anticipating to hit similar revenues as the previous year.

I'll use the marketing/advertising costs with Nuheara as another example. As they expand their product range, I anticipate that their customer acquisition costs will significantly reduce as they will be offering essentially three products (LiveIQ, Boost and IQBuds) while also having a much wider TAM to target. On top of that, Nuheara have announced Boost TV Streamer. Guess what one of the golden rules in business is? Find innovative ways of increasing the average transaction cost. The Boost TV Streamer will be a product which increases the average transaction cost. In quantifiable terms, I'll use some bogus figures for this exercise. We have a pool of 100 customers. The average Nuheara customer spends $420. With the launch of the Boost TV Streamer we now have 1 in 10 customers that decide to spend an extra $200 and acquire the Boost TV Streamer. Our average transaction cost has now simply increased from $420 to $440, an increase of nearly 5% in revenue. All that, without bringing IQBuds or LiveIQ into the discussion in Nuheara further increasing the customer's average transaction cost.

For some odd reason, people on HC view raising cash as the devil and business malpractice. What's an even worse sentiment is the issue of investors not understanding the concept that tech companies go through a churn stage in the prospect of firstly generating revenue, which in then followed with the prospect of obtaining and achieving positive cash flow. Justin's previously stated that was the reason why NUH had to go public so early as they had difficulties in raising capital from early seed investors in AUSTRALIA!

I'm happy with Nuheara raising cash pending their is positive progress. Like they say, better owning 10% of something that is worth $100m than 50% of something worth $50m.

Trust me, if I anticipate that Nuheara are heading backwards, I'll be the first one putting my hand up and saying F**K this, I'm out!

The upside for Nuheara is extremely huge and management haven't raised any of my two eyebrows to date.

Our of curiosity I would love to hear your opinion on FBR.

Nonetheless, quarterly due this month will provide a bit more of an insight. I hope they outline the number of Boost units sold up to the 31st of March via the Nuheara website to give us a better indication.