Ann: Quarterly Activity Statement and Appendix 4C, page-32

Here's a quick summary based on ASX announcements dated 15/7/19 and 3/12/19, on the relationship between Homestay and Essence APAC

15/7/19

Homestay appointed as exclusive reseller of Essence APAC solutions. Essence APAC is an entity associated with GRAHAM RUSSELL.

Homestay agrees to pay Essence APAC 4% commission on all sales/solutions when using Essence APAC solutions

Homestay must generate US $1m per annum of sales during its initial 3 year term

CEO of Homestay at time of announcement - Phillipa Lewis.


3/12/19

GRAHAM RUSSELL (same person above) now appointed as MD of Homestay Care

Essence APAC (the entity associated with GRAHAM RUSSELL) agrees to 50,000,000 shares to:

1. remove markup costs from purchase of Essence APAC solutions. Therefore Homestay is sourcing Essence APAC solutions at wholesale.
2. remove 4% commission/fee that would have been payable under the agreement as above
3. forego 36,000,000 options (can't find the terms of these - someone else can look deeper)
4. remove fees for support (that Essence APAC would have been charging Homestay Care)

GRAHAM RUSSELL (as an individual) who is now appointed MD of Homestay Care (as per Appendix B) agrees to:
30,000,000 shares (at an issue price of 0.005)
Salary $120,000

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Basically = Homestay (CEO Graham Russell) reselling solutions from Essence APAC (an entity associated with Graham Russell) at wholesale price.

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The $923k for product manufacturing and operating costs in the 4C would be for some of the Essence solutions sourced through Essence APAC (at wholesale costs).

As to what markup Homestay (using Essence APAC solutions) passes on to its customers ... hard to say .. But revenue VS product manufacturing costs - make your own mind up.

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Was in at $0.0065 pre-sell off to $0.003 but now out at $0.009.