[rexreed]

You made a huge and most likely incorrect assumption. The $15M is sell-through, of which they only get a percentage (my guess because they are reselling other people's products), and you are confusing top-line revenue with bottom-line profit.

From what I can tell from the business, they resell other people's products, which nets them most likely a 10-20% commission (affiliate revenue). So, that's $1.5M-$2M top-line revenue. Subtract salaries and overhead, and there's not much left.

[sumit_psp]

Maybe you're right. Now I'm curious as to how he bought his shares back from his ex-partners.

"Dumb mistakes that cost me close to $5 million dollars when it came time to buying out ex-partners."

If it's just affiliate revenue there is no way, the company had $5 million dollars in cash. He couldn't have sold shares since he said he has "total 100% ownership" of the company. He also mentions he never got a loan or an investment. Maybe it's just a missed business opportunity.

[tarous]

From what I know - and I do know a few people in the company - the other partner is still not fully paid. So it seems like the profits from the company are going largely there.

The company reached the the 15M in sales only 1 or 2 years ago - they were much smaller earlier. So there is no way $5M in cash. Also, knowing how the company used to function, I think Mike Reining was really important to its growth, so it's really unfair to ignore his input.

If you look at the company story, at the time Mike had a really great career - working for Boston Consulting Group and later as the Head of New Ventures at eBay, where he worked on the Skype takeover (Google his Linkedin profile). It was Vishen who was chased out of the US with the green card/visa requirements and Mike just was the only person who decided to team up with him, drop his position at eBay and set off to Malaysia to do something fresh.

It's safe to say it wouldn't happen without the German guy at all.

[mvadmin]

heres an example of how we make revenue. Download Omvana app from iTunes. Check the Store within the App. We hit #1 highest grossing app in 24 countries.