Ann: AGM 2022 Presentation, page-37

That's correct, FL. Even at scale, the contract manufacturing gross margin won't go much higher than where it is currently (which is circa 20-24%). Branded products (Tonik) might get to a gross margin of around 50% at scale. And THM has a blended gross margin of around ~65% as you correctly point out. The key to the overall group level gross margin will be unlocking growth in THM subscription (recurring) revenue (100% gross margin), which is currently c.40% of THM's revenue. It's very much a case of "I'll believe it when I see it (profitability)", for Halo. So we eagerly await the next quarter. I'm personally of the belief that the path to profits is now there, albeit with tight margins. However, the market isn't giving them any benefit of the doubt, and therein lies the opportunity as an investor. Internally, you'd have to imagine they have 5-year goals (FY27) for at least $150m rev, 40%+ group level gross margin, and a 10%+ group level EBITDA margin. That's about right for the F&B industry. Software companies can easily achieve 30 to 40+% EBITDA margins, medical device companies average around 20 to 30% EBITDA margins (at scale) but consumer staples/discretionary companies will target around the 10-20% mark for EBITDA margins. I think a 10% EBITDA margin is achievable for Halo once at scale (full plant capacity) ($100-150m+ revenue).