June 12 Webinar Link, page-109

Millions in expenses have been cut or moved to 'corporate', so breaking even is no longer the same as what was implied last year. In my opinion stating that buddy ohm and managed services businesses will break even is the CEO trying to save face. In my opinion it would have been many years before the old business was able to 'beak even', even with significant cost cutting.

Ohm is now a very small contributor to the revenue of the business (probably approximately 1%) and that percentage is going to stay low.

In my opinion Lifx will need to be very successful for BUD to become profitable. Going forward, BUD probably has approximately $3m in interest payments, something like $3m in corporate expenses, $0.5m D&A and probably a few million in share based payments. Meaning Lifx will need EBITDA of more than $8m for the group to be profitable for a whole year.

Remember if BUD is profitable in the Dec qtr and only the Dec qtr the following statement is achieved, they are not saying that they will be profitable for the whole of CY19 and they are not stating that they will be profitable in Mar qtr 2020 or June qtr 2020 etc:

1) Achieve Buddy Group (ie: Buddy Ohm, Buddy Cloud, LIFX) profitability "by" end of CY19