Ann: Appendix 4C - Quarterly Report with commentary, page-108

Apple's gross margin was 38% and their 'products' gross margin was 34%. If Lifx can get their GM to 34-35% by the end of 2019, as has been stated, that would be a good achievement.

Lifx being No 2 to Philips in smart lighting is a good achievement for a small business. Lifx has fast growth and could become profitable, we will not know until after the December quarter. The removal of the 10% tariff would certainly be a big help.

In my opinion BUD management seem to be big on ideas and poor on execution. In my opinion BUD management need to improve significantly.