Application.cfm to Application.cfc: Variables UNDEFINED?

Here is the code:

<cfcomponent output="false">

     <cfscript>
          //the application name (should be unique)
          THIS.name                     = "ProvisionKit_15";
          //how long the application variables persist
          THIS.applicationTimeout = createTimeSpan(0,2,0,0);
          //define whether client variables are enabled
          THIS.clientManagement      = false;
          //where should we store them, if enabled?
          THIS.clientStorage           = "cookie"; //cookie||registry||datasource
          //define where cflogin information should persist
          THIS.loginStorage           = "session"; //cookie||session
          //define whether session variables are enabled
          THIS.sessionManagement      = true;
          //how long the session variables persist?
          THIS.sessionTimeout      = createTimeSpan(0,0,20,0);
          //define whether to set cookies on the browser?
          THIS.setClientCookies      = true;
          //should cookies be domain specific
          //i.e. *.domain.com or www.domain.com
          THIS.setDomainCookies      = false;
          //should we try to block cross-site scripting?
          THIS.scriptProtect           = false;
          //should we secure our JSON calls?
          THIS.secureJSON           = false;
          //use a prefix in front of JSON strings?
          THIS.secureJSONPrefix      = "";
          //used to help ColdFusion work with missing files
          //and directory indexes. tells ColdFusion not to call
          //onMissingTemplate method.
          THIS.welcomeFileList      = "";
          //define custom coldfusion mappings.
          //Keys are mapping names, values are full paths
          THIS.mappings                = structNew();
          //define a list of custom tag paths.
          THIS.customtagpaths      = "";
          
     </cfscript>

     <!--- Run when application starts up --->
     <cffunction name="onApplicationStart">
          <cfreturn true />
          
          <cfscript>

               APPLICATION.homePage          = "/index.cfm";

                     // billing status
               APPLICATION.billingStatus.free                = 100;
                     APPLICATION.billingStatus.current           = 101;
                     APPLICATION.billingStatus.paymentDue     = 102;
                     APPLICATION.billingStatus.past30           = 103;
                     APPLICATION.billingStatus.past60          = 104;
                    
               APPLICATION.assetType.TEXT                    = 1;
               APPLICATION.assetType.IMAGE                    = 2;
               APPLICATION.assetType.VIDEO                    = 3;
               APPLICATION.assetType.SKIN                    = 4;
               
               APPLICATION.assetLocale.LIBRARY               = 1;
               APPLICATION.assetLocale.TEMPORARY          = 2;
                    
               APPLICATION.libraryType.USER               = 1;
               APPLICATION.libraryType.COMPANY               = 2;
               
               APPLICATION.code.SUCCESS     = 100;
               APPLICATION.code.FAIL          = 101;
          </cfscript>
          
               
     </cffunction>

     <!--- Run when application stops --->
     <cffunction name="onApplicationEnd" returnType="void" output="false">
          <cfargument name="applicationScope" required="true" />
     </cffunction>

     <!--- Fired when user requests a CFM that doesn't exist. --->
     <cffunction name="onMissingTemplate" returnType="boolean" output="false">
          <cfargument name="targetpage" required="true" type="string" />
          <cfreturn true />
     </cffunction>

     <!--- Run before the request is processed --->
     <cffunction name="onRequestStart" returnType="boolean" output="false">
          <cfargument name="thePage" type="string" required="true" />
          <cfreturn true />
     </cffunction>

     <!--- Runs before request as well, after onRequestStart --->
     <cffunction name="onRequest" returnType="void">
          <cfargument name="thePage" type="string" required="true" />
          <cfinclude template="#ARGUMENTS.thePage#" />
     </cffunction>

     <!--- Runs at end of request --->
     <cffunction name="onRequestEnd" returnType="void" output="false">
          <cfargument name="thePage" type="string" required="true" />
     </cffunction>

     <!--- Runs on error --->
     <cffunction name="onError" returnType="void" output="false">
          <cfargument name="exception" required="true" />
          <cfargument name="eventname" type="string" required="true" />
          <cfdump var="#ARGUMENTS#" />
         <cfabort />
     </cffunction>

     <!--- Runs when your session starts --->
     <cffunction name="onSessionStart" returnType="void" output="false">
          
          <cfscript>
               // this will allow us to call any objects function without instantiating it
                     APPLICATION.user                = createObject( "component", "apps.com.User" );
                     APPLICATION.company               = createObject( "component", "apps.com.Company" );
               APPLICATION.presentation     = createObject( "component", "apps.com.Presentation" );
               APPLICATION.library               = createObject( "component", "apps.com.Library" );
                    
                     // get/set list of all companies
                     APPLICATION.companyNodes     = APPLICATION.company.getCompanyNodes();
          </cfscript>
          
     </cffunction>

     <!--- Runs when session ends --->
     <cffunction name="onSessionEnd" returnType="void" output="false">
          <cfargument name="sessionScope" type="struct" required="true" />
          <cfargument name="appScope" type="struct" required="false" />
     </cffunction>

</cfcomponent>

As far as I understand it, an Application.cfc should take precedence over an Application.cfm, if present, correct? There's nothing that I need to do to make sure that the .CFC runs?