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Financials
Nine closed months, no rounding
Income statement
Revenue and gross margin
Cost of service is revenue share alone, so margin widens mechanically as the base grows — 63% to 89% in nine months.
Hover the chart for monthly detail
Monthly detail
Profit and loss, every closed month
| Apr 26 | $17,982 | $15,263 | 84.9% | $8,900 | $45,496 | (31,014) | 388 | 17,040 |
| Dec 25 | $7,910 | $5,967 | 75.4% | $3,900 | $39,829 | (35,419) | 192 | 5,841 |
| Feb 26 | $11,355 | $9,411 | 82.9% | $5,100 | $40,848 | (32,993) | 384 | 11,416 |
| Jan 26 | $7,831 | $5,949 | 76.0% | $5,100 | $40,799 | (36,468) | 290 | 7,684 |
| Jul 26 | $26,111 | $23,301 | 89.2% | $13,200 | $54,912 | (32,301) | 689 | 29,287 |
| Jun 26 | $21,351 | $18,626 | 87.2% | $13,200 | $49,812 | (31,961) | 383 | 25,006 |
| Mar 26 | $14,396 | $12,249 | 85.1% | $6,900 | $42,784 | (31,888) | 487 | 14,898 |
| May 26 | $19,320 | $16,706 | 86.5% | $11,000 | $47,416 | (31,596) | 393 | 21,428 |
| Nov 25 | $4,784 | $3,012 | 63.0% | $4,750 | $40,699 | (39,415) | 188 | 4,955 |
Sort by any metric, or filter by period · 9 of 9 rows
Unaudited management accounts, US dollars. Interest expense is nil in every period. Software development capitalized at $3,500 per month sits below operating income and is captured in net cash flow. Source: Income Statement and Cash Flow Statement tabs.
Cash
Burn has been flat while revenue ran
Hover the chart for monthly detail
What that means
Nine months of net cash burn between $31K and $39K, while revenue grew 5.5× and subscribers grew 5.9×. The cost base is fixed; the output is not.
Marketing is the only line that scaled — from $4.8K to $13K a month — and it was funded by widening gross margin rather than by more capital.
Cost structure
Where $55K a month goes
- Payroll$28,500
- Marketing$13,200
- Software amortization$6,667
- Rent$3,211
- Revenue share$2,810
- Office admin$405
- Utilities$119
July 2026. Excludes $3,500 monthly capitalized software development.
Unit economics
The base is mostly free already
Roughly 6% of the base carries the revenue today. That is the argument for the pivot in miniature: the paid tier is already a rounding error against the audience, so removing the price removes very little revenue and unlocks the other 94%.
Use of funds
Deploying $2.5M
Marketing and operations take 81% of the round. Product takes 4%, because App 2.0 is already launched.
- 45%Operational expensesStaffing, technology upkeep, day-to-day necessities.
- 36%MarketingInfluencer layer plus paid amplification.
- 10%HiringMoving contractors to full-time; Enterprise and online verticals.
- 5%Partnership marketingTargeted support and materials for distribution partners.
- 4%Product developmentApp 2.0 is shipped; remaining spend is tweaks.
$900K
Into marketing
Against $13K a month today
$250K
Into hiring
Contractors converted to employed roles
$42K
Fixed monthly opex
Everything that does not move with marketing spend
~$80,000
Headcount avoided, annually
Social headcount replaced by partner-driven distribution
Runway
What $2.5M buys, four ways
Going free removes $26K of monthly revenue and the revenue-share cost that sits against it. That is the real cost of the pivot, and it belongs in the runway before any marketing ramp does.
| Scenario | Marketing / mo | Revenue / mo | Net burn / mo | Runway |
|---|---|---|---|---|
| Stay paidNo pivot, no ramp. The floor, and the case that raises no money. | $13K | $26K | $29K | 85 mo |
| Go free, hold spendFree access with today's marketing. Proves the pivot cheaply, grows slowly. | $13K | — | $56K | 45 mo |
| Plan caseBase caseFree, with the round's marketing and hiring budgets spread over 24 months. | $48K | — | $90K | 28 mo |
| AcceleratedSame budgets deployed in 18 months. Faster to the Series A, thinner cushion. | $64K | — | $106K | 24 mo |
28 months
Base-case runway
Comfortably past the 18-month mark most Series A investors want to see a full free-model cycle inside.
0.97× / 5.9×
Burn to ARR / capital to ARR
$303K burned in the closed months against $313K of ARR. Against all $1.85M ever raised, the figure is 5.9×.
$2.5M @ $20M
Round opening January 2027
$22.5M post-money, 11.1% dilution, 64× current ARR.