Ann: Half Year Results Presentation, page-9

Is it 2022, 2021 or 2023? Did anybody else notice these consistent date errors in this announcement and the cost saving one? Anyway rats and mice.

Moving on, it is really important that investors understand financial statements and how a business operates. Its easy to get carried away by a powerpoint slide but you need to ask HOW?

My theory is that the gross profit increase is artificial. Not intentional, its just how inventory builds work. They aren't consistent and can skew this type of financial data from quarter to quarter.

FIJ have been selling through inventory that was expensed 12 months ago which makes the GP look good especially when that stock was from a different quarter, and in this case a financial year.

FIJ will soon need to built inventory to supply CJ Patel & Vitamin Shop for their first order. This will add to the expenditure on the books and the gross profit is back down again.

There is also the matter of R & D for new product development that has been similarly cut to the bone of late. How will it create all these new great products with no money?

Here is the December 2022 Quarterly.

Research & Development stands at $11,000 FYTD. Which I assume is what it cost to put together the slide show from the presentation - nothing else.

Inventory to date is at $308,000 FYTD which is very low. This is toed in manufacturing. Likely no inventory completed.




Coincidently the last time FIJ did an inventory build was the same comparative quarter 12 months ago.

This was also the same time FIJ launched its kava powder range and expenditure on new product development increased accordingly.

VS

December 2021 Quarterly

This is the last time FIJ did an inventory build (based of ASX release notes) and you will see the significant increase in product and manufacturing.

There is also the big increase in R & D for new product development. This period was when the kava powder was launched to market and the proposed increased lineup of capsules was meant to be released but never did.



The quarter prior referencing the inventory build




The company will need to cash up very soon. And why I speculate a sizeable cap raise could be on the way.

Cost savings to date all refer to admin & corporate expenses.

Money is required for working capital + Inventory + New Product Development = ???

THis will potentially either be a large cap raise of $1-2 mill increasing the register 50 - 100% at sub 1c pricing or the same road of continued cap raises quarter after quarter which has driven the shareprice from 14c to 0.006c over the past 18 months.