Chapter two no bankruptcy guarantee, page-21

I’m not sure how these posts regarding Jimmy’s remuneration could be considered lies Coast.

The annual report states Jimmy’s salary consists of $450,000 + super. He is further entitled to 5% of the profit after tax attributable to members.

In addition (as announced in the HY results):

On 1 February 2022, Hong Kong Debt Management ServicesLimited (HKDMS) (major operating subsidiary) entered into a trustee serviceagreement with Jimmie Wong to compensate his services as bankruptcy trustee.The fee consists of i) HK$450,000 monthly service fee circa A$81,000 and ii)10% earnout which is calculated based on HKDMS’s monthly revenue roughly aroundHK$300,000 circa A$54,000.

I read this as (in addition to his CEO salary) Jimmy is now taking approximately $81K AUD a month (service fee) plus a further $54K AUD a month (earnout).

I assume the earnout is dependent on HKDMS achieving revenue targets.

That’s an additional $135K AUD a month = $1,620,000 PA.

This equates to:

- $450K base wage + $45K super (assume 10%) = $495K

- 5% of profit after tax (assume HY profit doubles to $3.2M for FY) = $160K

- Monthly service fee + earnout ($135K a month) = $1,620,000

Total remuneration of approx $2,275,000 PA. This for a business that is supposed to be retaining surplus cash for growth initiatives.

I’m no expert and happy to stand corrected if I have misread or miscalculated.