Ann: Appendix 4C - quarterly, page-46

Value q3 production costs were not to low and did not fall into q4.

Q3 costs were low because q2 revenue was low, had q2 revenue been hight Q3 costs high.

They pay 50% trailing commission.

They did 2m q4, so q1 2020 will have 1m commission, it won't be low costs.

There costs are directly linked to revenue as 1/2 is paid out.

Most business if they sell 1m, of goods, it may cost 500k for a pre operating profit 500k, then expenses for operating profit.

They do sales and allocate 0 cost, so pre operating profit high, then put the costs of the product in expenses.

So looking at the books, you see 100% on goods sold, versus 50%. It hides the true cost of sale. If you look at fbhifi. You see revenue, cost of goods, then expenses off it, with scl, you see revenue, no costs, looks nice, then expenses off it.

So revenue looks better and people wonder why costs are do high. There not all really operating costs. Affiliate commissions, which they are are dollar for dollar fixed expense on getting revenue.

I think the market has spoken today.

I did say it would go to 1.6 in my posts, flat revenue is not good, I was looking for 2.5m atleast in q4.