This is a real bare-bones operation, even by the standards of ebook publishing. For instance, they expect you to pay for the cover design, to send your book in "final format with all artwork" (does this mean they expect you to get it typeset?) and to pay to register your own copyright.
Their claim that they offer very generous royalties in return is moot, too — they're offering 40% on net and comparing this (rather misleadingly) to large publishers' royalties on print books. 25% on gross is standard for ebooks, and some publishers offer more, so this isn't particularly brilliant.
There's one other oddity as well, in this statement: "By submitting to us, you will automatically accept the terms of the contract." Normally contracts are negotiable, and merely submitting to a publisher doesn't commit you to anything.
Overall, I don't really see what they offer that you couldn't do via your own website, keeping 100% of the income.