Ann: Appendix 4C - quarterly, page-2

I like the company and the product if offers. IMO it has a massive potential. Managed to get in at 7c which has a lot of margin of safety. Revenue will be probably growing but what worries me is a constant lack of profit. Even more is the slightly negative operational cash flow.
I have a feel that OCF is manipulated by management to be breakeven. I like that management owns 70% of the company but I do not like how they filter the cash out of it to all the subsidiaries. There is a lot of cash (400k) for some software development sent to India. In Australia a super hero IT developer charges 100$ per hour, thats 800$ per day, 20k per month, 60k per quarter. That means 7 consultants in Australia for 400k and 7 consultants is too much for 1Q for such a small company - not even mentioning at cost in India!!!

Anyway, I am happy to hold and see what they can do with this company (intuition buy). The product and demand is there. The management has to keep the profits inhouse rather than filtering it out, I assume with 70 milion shares they will like to have this company at 30 mil cap rather than 7mil. All IMO.