Ann: Preliminary Final Report, page-4

Hi Cronus,

The loan is asset neutral as it increases assets and liabilities.

The drop in the asset base is of course partly due top the lack of revenue generation and also due to the non-capitalised R&D expenses.

DTS is at an early stage and can't save money on R&D to efficiently use its AI capabilities.

AI is the current frontier which promises huge rewards when rolled-out successful and paradigm shifting ahead of any competition.

As such the company needs to invest continuously and their is the risk that the revenues are not sufficient to cover the expenses for a while.

The market capitalisation of less than $28 Million is reflecting this.

Management's focus on the US and higher revenue services is the right strategy and we will see how the company will establish itself in the US throughout the year.

The funding deal with Eldridge and Goudy should be completed any day now and approved by investors this month The funds should accelerate the developments in the US substantially.

Thanks

K