LVT Expenses, page-36

The qrtr reports highlights are very interesting when you piece together all information.

The ARR is $40M and the cash payment to staff is $31M. so the payments to staff is about 77% of the total revenue. so out of the $40M revenue $31M is paid to staff, then some are loaned to the directors and if excess cash then bonus is paid. for other operating costs to run the business, the ASX is the perfect place to get capital with zero interest rates.

Before this ARR boom is over, staff costs needs to come down to reasonable level.

$400k bonus is just too high especially when the company is making losses.

On top of this madness is the loans to related parties. Firstly, the company is not generating enough cash to pay for its day to day expenses as 77% goes to staff costs, but yet they are able to provide loans to related parties.

It appears that most of the funds are being spent on staff rather than being used to grow real value to shareholders. 77% of the total revenue being spent on staff costs is just ridiculous.