Ann: Administrator/Receiver - Appointed/Removed, page-13

Like BB I bought in after the dec qtr reported $22m cash receipts only to find 2’weeks later they went into suspension and I was down over a hundred grand.

I think the learnings for me are :

- listen to your gut. I was uneasy about the change in auditors but I couldn’t get past cash is cash and I couldn’t see how they could manipulate that. Profit yes but not cash. If any seeds of doubt stay away.

-If afr or other paper is dong negative story stay away and don’t think it’s all out in one article. On hindsight this seems obvious but at the time I didn’t think that Shapiro knew more and couldn’t put it all out as it would take up half the paper and he’s prob got several hundred words limit per article. I bought after first financing story came out but without the detail and big’s response was that like plenty other companies they offer financing arrangements. Again I couldn’t see how audited statements could record revenue if there was risk of repayment. I still believe that but it gives a rationale for change of auditor.

- Stick to what you know. I don’t know tech and I knew it was outside my comfort zone.

- Again listen to your gut and Don’t believe that everyone is honest. I worked out early (in suspension so Couldn’t do anything) that something was up as I could not reconcile how revenue grew so much even if they received cash as the
Bulk of that would be going to deferred revenue on balance sheet and only amortised over 12months and acceptance rates were low so looking at last financial year the statements they didn’t make sense to me.

- Acceptance and moving on. I knew it was F’d and sold to delisted.com before any administrators appointed in last financial year so I could utilise the full loss (i has a good year regardless). Delisted. Com like me deemed the shares worthless in June.

Best of luck to all