GainFrame
Pass. Early-stage iOS app with minimal profitable revenue (18k annually), zero reported profit, and a 4.61x SDE multiple on a pre-revenue business model. No clear path to cash flow justifies the risk.
- •Annual profit reported as null/zero despite 60% claimed margin
- •Only 18 months old with 18k annual revenue (1.5k MRR) — far below minimum cash-flow threshold
- •No evidence of recurring subscription revenue or customer retention
- •App-only distribution creates single-point-of-failure dependency on Apple
- •Asking price (85k) exceeds 4.6x SDE — inverted risk/reward for pre-revenue deal
What is GainFrame? GainFrame is a health and fitness application distributed on Apple's App Store. The business is structured as a SaaS product targeting fitness enthusiasts.
Financial snapshot. Current annual revenue stands at $18,432 (approximately $1,536 monthly recurring revenue). The seller claims a 60% profit margin, but annual profit is not confirmed in the listing. The asking price of $85,000 represents a 4.61x SDE multiple.
Fit assessment. This deal is early-stage and carries substantial execution risk. The business has been operating for less than two years with revenue below cash-flow minimums typical for search-fund acquisitions. There is no disclosed information about customer retention, churn, or subscription stability.
Next steps. Before proceeding, verify claimed profit margins with tax returns or bank statements, understand customer acquisition cost and lifetime value, and assess dependency on Apple's App Store policies. Given the early stage, this listing is better suited for venture or angel investment than operational M&A.
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LamboApp surfaces the deal. The broker holds the intake. Do your own diligence — our fit score is a starting point, not a green light.