Ann: FY20 Q1 Activities Report and Appendix 4C Cashflow Statement, page-41

BUBs is in it's infancy stage!! Operating costs are going to be high due to introducing new products which incur extra 1 off costs, coupled with the marketing expenses to develop brand awareness in order to generate sales. Advertising and marketing is forecast to increase next quarter and I'm comfortable with that. It is what a young company has to do to drive sales up. Manufacturing and operational costs are forecast to be $5m higher than the first quarter. That tells me that they are increasing production to meet with anticipated demand. Staff, Admin and corporate costs are forecast to be similar to Q1. Subsequently with increased sales inline with increased production with similar operating costs (excluding cost of increase product) will greatly reduce operating losses.. BUBs needs time to develop, build, promote and create brand awareness to a discerning customer base. For this to be done correctly, it can't be funded on a shoe string. Patience is required!! IMO