Ann: Appendix 4C - quarterly, page-49

There's no doubt that the continuation of adjusting accounts to come in line with
gross margins has continued into this current quarter , which is slightly disappointing ,
was hoping that we had seen the last of that exercise . Still feeling the effects of the
previous " cluster f... " .
However , imo , the true success of the current 4c is buried and not spruiked at all .
Assuming we can tie in cash receipts and revenue to be tracking around the same levels
since recurring revenue has been similar for the last few months

Averaging around $1.75 m per month for the july - sept period


Previous Bespoked Financial model



As you can see the gross margin on the 4C is negative , this is reinforced by the yearly where
$22.4m revenue was recorded and product and manufacturing cost of $23.9m !( Ignore the
R&D costs , they don't count on gross margins )

Now , Dirk and team have been transforming the Company , as you all know , however have
a closer look at the current 4C and the gross margins being achieved . Side note , the margins
spruiked by AJX are NET MARGINS not gross margins

NON Bespoked Financial model



The Gross margin has gone from negative to 45.3%  ( 5764-3149  / 5764 *100 ) and the 23%
AJX are Net Margins , ( albeit we are talking cash not revenue , but should be close )
The expected cash outflows for the next quarter included PM&O costs of  $4.1m which
should translate to around $ 7.5m at 45.3% GM .

cheers .....glta