Ann: Business Activity Statement & Appendix 4C - Dec-2023 Qtr, page-16

Thanks for your response Doc, l appreciate the effort and depth you've put into it.

Regarding the profitability comment - you're right there. My apologies, that $300k between 2017-20 adds up for the capex investment. I have no idea why l made that connection, but l did make the comment. Thank you for the correction on the fundamentals.

I'm aligned with the commentary of cash payment sequencing - but I'm not yet convinced on it's influence on profitability until l see a sustained trend in their financials.

Where I'm challenged is three-fold:

1) EOS has operated for over 40 years, if there would have been material benefits with cash-in-advance structure, why was it only recently introduced? Especially given EOS's positive relationship with its vendors.
2) The previous arrangement in my mind is still essentially cash-in, cash-out. The cashflow crunch caused by delays is notable, but I'm not able to correlate it with the longstanding poor profitability position as a driver
3) I had thought the recent improved cashflow position were mainly due to significantly higher customer receipts. Are we saying that this is driven by upfront cash payment? If so, l may also be off-mark with my impression of core demand...

Just reading the above dot points have really got me nervous - has the business really lacked that much acumen and self reflection to not make improvements much earlier?

Regarding BG, l don't doubt that he has accomplished a lot for EOS. I appreciate that you have represented his achievements and contributions. Perhaps my key criticism was (what l perceived to be) a lack of transparency during the advent of Spacelink. I get we're human and nobody's perfect, but as the CEO of the company, he must've known at some point that the Spacelink program was untenable. I was also challenged by the expensive and lackluster strategic review which seemingly became the answer for every difficult question without really answering for anything. Perhaps the point I'm making here is that he was a key decision maker and wore the helm which lead to the near-extinction event for EOS, which frankly could have been avoided earlier.

Despite these shortcomings, I also acknowledge and respect that BG has one of the highest internal share holdings of EOS; l don't believe he has sold any significant position which is hopeful.

I'm with you on the last point - I firmly believe the spare price is under-valued and represents an attractive buying opportunity. Based on what I'm seeing, new management is doing all the right things and more importantly, sentiment is also recovering.