Ann: Annual Report to shareholders, page-7

I'm with you on hoping those deals come off sooner rather than later but the one positive is they've placed the big order already so they can fulfill whatever rollout needs immediately.

The current revenue rate for wearables was around 1million pa (annualised) in direct online sales at the end of fy2018. This doesnt include Jb hifi revenue as that started after July 1st. They also made comment that they expect wearables to exceed 50% total revenue this year which means at a minimum (excluding future deals) they expect nearly 4million total revenue.

I looked over the cash flow and these are my thoughts also.

If you take out share payments and amortisation, they made a profit of around 550k in real cash terms.

Cost of sales was 300k and revenue was 450k for wearables. Most of the cost would be wearables but not all. I would say they are making gross margins of around 50% on wearables.

Considering revenue was 2.7milliom and they made 550k underlying profit, I would assume going forward they will keep this net margin rate of around 20%. I wouldn't expect an increase on margin for wearables because they either do their own distribution (online sales) which costs what it costs or they get a distributor but recieve lower gross margin. Both should be pretty consistent.