Ann: Skyfii Quarterly Business Review and Appendix 4C, page-4

Okay report, nothing special... Notably there were no contract announcements between 4C's and that is slightly concerning. A few key statements stick out to me.

1. $2.8m in Total Contract Value converted during the quarter

This is interesting because the pipeline from last quarter had $3.0M in the contract negotiation + committed section. More proof the company is delivering on what they said they would

2. BUT... Proforma Annualised Recurring Revenue (ARR) exited Q3 FY22 at $15.4m

What does churn look like, because last quarter the ARR was $15M, so we are saying the $2.8M TCV conversion only impacted ARR by $0.4M... Maybe covid lockdowns and the like still impacting them??? this is from the CEO commentary --> The long term and sustainable value provided by our solutions is reflected in our customer churn rate of <4% and our rolling 12 month deal pipeline, which now stands at over $32m in advanced stage deal value

3. Rolling 12 month pipeline includes over $32m of advanced stage deals

Last quarter the pipeline included $37M of advanced stage deals, $2.8M has been converted, so that means a minimum of $2.2M has been rejected by various clients and removed from the pipeline, presumably more, because surely there would be new additions to the pipeline. This is a bit concerning IMO, as the pipeline conversion is critical to this company turning a profit, likewise low churn is.4. The Company reconfirms that 2H FY22 revenues will exceed the record levels achieved in 1H FY22

While this is good, this would equate to a revenue of $5.4M in the last quarter to exceed last half.

4. Outflows have normalised which is great.

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The question for me is still, show me the scalablity... Time will tell, still a hold and I hold a small position, but not convinced on loading up on this one just yet. Same comment from the last quarterly, the company has $5M in cash and access to $2M loan - so onany confirmation that this thing is scaleable and not requiring a CR than it could well fly significantly higher... Watch for the new contract announcements.