Ann: Preliminary Final Report and Annual Report, page-2

Annual Report 2023

Reading the small print as I like to do, I make the following observations;

• Wrkr entered into an "updated" MSA with Link Group.
• Delivery of "onboarding of super" functionality in market (at Scale).
• Wrkr Ready advancements of which I am particularly interested in are franchise agreements & Ahpra credential checks. These services must be required for a future client.
• Float income used for platform consolidation & cyber hardening - good use of non-core income funds
• The business is not effected by current economic discretionary spending challenges. This is a very good point re Wrkr's business model.
• Management are now stating they are aiming to be EBITDA positive in 2025 not end of 2024 as recently mentioned in the webinar.
• Happy to see the specific mention of upselling employee onboarding, STP and wage payment products to our larger superannuation contributionmembers. I read contribution member's to be employers.
• Directors have reclassified Wrkr Benefits in the prior year as Wrkr Pay activities. The group does not expect to bring on Wrkr Benefits until at least 2025. I would say management will have their hands full implementing Link related services and Wrkr Benefits has been placed on the back burner.
• It is noteworthy that the funds raised in the Convertible Note issue and SPP of $4.2M back end of 2022 is roughly the same $4.1M as the company held in cash at the end of FY 23. That is good capital management.
• Good to see that all employees that were eligible for the Employee Incentive Plan accepted their full entitlement (12M performance rights).
• Major Product Line Income

Wrkr Pay $3.9M (doubled in value)
Wrkr Platform $3.5M (I expected this to have increased more than Wrkr Pay)
Wrkr Ready $0.8M (Obvious that Wrkr has not even tried to sell this product)

• One off $165k tax bill payable for Comply Path income tax position pre-merger. This amount was paid during FY 2023.
• Receivables (aged debtor listing) is well managed, with an expected potential right off of $10,800 which is nothing in the scheme of things. Karen rules with an iron fist (LOL).
• $664k in contract work to be completed and invoiced within the next 12mths (that will predominately be Link Group SOW income I would guess).
• Premium loan funding (for Insurances) rate of 5.29% is a very respectable borrowing rate.
• I have never seen in a company that I have been invested in, the number of shareholders as a percentage skewed to holdings greater than 100k that hold 98% of the shares on issue. I don't know what to think of that (good/bad/indifferent)????

Over all, the annual report holds no surprises for me.
Ian