Ann: Appendix 4C June 2018 Quarter, page-70

this 4C report is beyond disappointing - it is just terrible. This is worse than the Dec 17 4C which had only $23k of revenue, but at least there was a note released 3 minutes later to advise us there was another $296k to come attributable to the Dec quarter but received late. That meant a total revenue attributable to the Dec qtr of $319k.
Then we got the 4C for the Mar qtr and that showed the inclusion of the $296k from the Dec qtr giving a total revenue of $617k, which leaves a net revenue for the qtr of $321k - a growth of 0.6% in royalty revenue qtr on qtr. However, there was a clear expectation that sales momentum was building and royalty revenue was going to increase substantially from here on.
Now we get this 4C - and growth has stalled, and revenue is plummeting to $255k - a drop of 20% from last quarter.
The only hint of a reason we're given is that this was in line with expectations and there are seasonal variations. No, it was not in line with expectations. This is the first time we're told that sales of products incorporating our technology is seasonal. If the directors knew this they should have been telling us. There is not a hint that this technology is ever going to be profitable. There is no information about sales penetration to date in SE Asia, likely sale growth, market development of either the Magnemask or the SKII product. What has SKII contributed - if MagneMask is now the main source of royalties in this quarter, then is SKII power booster just a flop? I thought SKII was supposed to be the main driver of royalty growth. Why is there no commentary on this product's market penetration in the update?
Given that the financials are so critical to our business that part of the business warrants a lot more commentary from the board than just 6 lines in this report. Why have sales fallen - in which markets and in which products. Is this situation likely to turn around and what is management doing to address themselves to this awful situation - or are they just sitting on their hands and hoping the next big thing to rescue OBJ will come out of the development pipeline sometime in 2019 at the earliest? What has happened to BodyGuard? Anything - or is this just slipping by the wayside, hopefully unnoticed by shareholders, as another pie in the sky idea with no commercial worth?