Ann: Additional Work Order of $759K with KPMG for Defence, page-12

It has been a pretty tough road for the AR9 shareholder for last 2 years seeing the price retreat from 40c down to 10. I am in red a fair way but i think the company has hopefully bottomed and with a stabilisation of outgoing costs, modest increases in revenue and conglomeration of these smaller contracts and tranches with KPMG we should see the quarterly figures show green shoots and attract new interest.

The other observation on AR9 which i find a positive is that they have a strong moat in their IP and product versus other companies given the last 10 years of development and can scale up quickly as a lot of software companies can. This gives me hope that they can grow quickly once a few decent contracts drop.

As far as the macro background supporting the business, its only getting stronger and larger by the week.

• 2022 hacks of Medicare, Optus etc that are well documented
• End of 2023 has seen a second hack of Lastpass which is one of the largest global password vaults. https://techcrunch.com/2022/12/22/lastpass-customer-password-vaults-stolen/
• Another US large utility hack. https://edition.cnn.com/2022/12/27/politics/hackers-data-utilities-ransomware-sargent-lundy/index.html

Interesting that many of these hacks are not to control systems etc but to mine key data, passwords etc to launch further phishing campaigns of other businesses and individuals.

I must admit i have been as frustrated as the next shareholder that the company has not landed another big fish beyond DOD lately nor even lots of smaller fish through NC Protect as i envisaged this would bring in lots of bread and butter revenue to support the larger Kojensi contracts. Whilst i still have a bit of this frustration, i can see that with more time that the zero trust protection around passwords and documents will be required and possibly mandated across a lot more businesses than just defense.

Anyway good luck to all the long suffering holders. Do your own research and lets hope that 2023 is a good year!