Ann: Quarterly Activities Report and Appendix 4C, page-3

My Take:

• Revenue flat.
• Net cashlow worse than the previous quarter
• Admin & corporate costs up 20%
• Advertising costs down, and equal to only 1.2% of admin/corp costs. i.e. no marketing or advertising occurring.
• 39 million shares issued to cover expenses that they couldn't afford. i.e. dilution through the roof.
• $552k of transactions costs incurred to raise equity of only $1.5 million. i.e. outrageous!
• Only $64k of debt repaid, with transactions costs related to loans of $268k. i.e. for every $1 of debt repaid, $4.18 of other costs were inccurred = going backwards.
• $286k hit on unhedged fx movements = rookie play.
• $599k paid to directors and related parties, including $332k to Everblu.
• Of everblu's $332k pay day, $109k was from additional fees mandated by Everblu in their contract reset earlier in the year, in which shareholders had no say. i.e. incredulous.
• Outstanding debt of $5.5 million, with quarterly losses of $1.5 million and flat revenue = doomed IMHO.