$2 PARTY, page-8767

I think I might put this on repeat lol...........................

ASX quarterly reports can provide valuable insights, but investors should approach them with a critical eye and not rely solely on the information presented. Here are a few key points regarding the reliability of ASX quarterly reports:

• Quarterly reports are unaudited, meaning the financial information has not been independently verified by an external auditor. This increases the potential for errors or misstatements compared to audited annual reports.
• Companies have an incentive to present their performance in the most favorable light possible in quarterly reports. Investors should be wary of overly optimistic or vague language and look for concrete financial data.
• The level of detail provided in quarterly reports can vary significantly between companies. Some may provide comprehensive cash flow statements and commentary, while others give minimal disclosure, making it difficult to assess their true financial position.
• Quarterly reports focus primarily on cash flows rather than profitability metrics like revenue and net income. While cash management is important, these reports may not give a complete picture of a company's operational performance.
• Established, profitable companies are not required to lodge quarterly reports, so this reporting obligation falls mainly on smaller, cash-burning companies which inherently carry more risk.

In summary, while ASX quarterly reports can offer timely updates on a company's cash position and progress, investors shouldview them as just one data point among many. Corroborating the information with other sources, audited financials, and a healthy skepticism is advisable when evaluating the reliability of these reports.