Like most software-based business models, the Company could benefit from relatively low direct costs. The most significant expenditures in Moxian’s business model are likely to be for sales and marketing as well as product development. Selling, general and administrative expenses totaled $3.6 million in the first nine months of fiscal year 2015, bringing the operating loss for the period to $3.7 million. Software-as-a service business models such as the Moxian platform, typically afford operating leverage. Management believes that operating breakeven can be achieved with the accumulation of 25,000 paying merchants. At an average of $100 per month in merchant fees a customer base of 25,000 could deliver an estimated $30 million in annual sales.