Ann: Change of Director's Interest Notice, page-7

Lasoo is our ‘Gallopoli’ – no matter what management says and they are gushy on feel good matters as reportedby another HC member who attended the AGM.

Again, they have deferred an update to another period as in “expect to update investors on our plans for Lasoo withthe release of the 1HFY24 results in February’. They did this when reporting the FY23 results as well. Reading between the lines they are paddling furiously to get traction, otherwise why say it if you have supreme confidence in the – quote - ‘original business case’. Reality is that they are hardly likely to bag it because it’s their idea.

As I understand it, Lasoo isa no stock held, clip the ticket business model. It should be asset light (nostock) with a substantial loyal customer database which tech heavy AI canplunder for selling opportunities where they can introduce niche products tocustomers who have expressed interest in that niche area and at an attractive price which gets the customer to add to the shopping cart. Plus, they must have good relations with willing suppliers to provide good quality merchandise at value for money (and I don’t think this is the case).

With respect to performance,the FY22 AR quoted (Page 22) quoted ‘over 200,000 active (Lasoo) users per monthon average” and “IVE was unable to properly commercialise Lasoo given thelimited historical functionality’.

According to the AGM pressoof 20 November 2023, monthly users is now just reaching 290,000 with an ABS (average Basket Size) of $172 and an expected FY24 GTV (Gross Transaction Value) of $15m. Hardly inspiring stuff, though management have puffed this up as ‘64% above the original business case’.

Remember we just clip the ticket and let’s say that clip is 10% then our Lasoo revenue is just $1.5m. No wonder we are going to suffer another cash draining disaster – I expect another $4m disaster and now not expected to break even till FY26. This implies a FY24 CODB of around $5.5m and extrapolating this to BE point in FY26 means GTV must be $55m! Big improvement required at a time of growing competition.