| 1 | is a big uptick in new contracted revenue in the last quarter, revenue will probably exceed |
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| 2 | 21/22 by around 5m whilst expenses may have grown by 6m. If this is the case, the 21/22 |
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| 3 | loss has grown marginally, far from what shareholders would have liked.. |
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| 4 |
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| 5 | In terms of new business reported (doesn't include small quarterly amounts), it is |
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| 6 | bitterly disappointing. Excluding two Silverlink renewals, and the extension of the Leidos |
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| 7 | partnership, as far as I understand, this was the only new contract announcement for 22/23. |
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| 8 | Dec 1 2022 - UHS 900k p.a. initially - eventually possible 3.4m p.a. - hardly massive. |
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| 9 |
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| 10 | There have been significant increases in overhead costs. Presumably, to allow for the |
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| 11 | anticipated (but as yet not forthcoming) substantial revenue increases. |
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| 12 |
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| 13 | Of extreme disappointment is the Silverlink acquisition. Whilst we understand the reason for |
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| 14 | the acquisition, it has not yet borne fruit. The share price suffered a decent drop following the |
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| 15 | acquisition announcement. We of course don't know what the impact of the acquisition has had |
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| 16 | on our "bottom line". It would be interesting to provide that information. It is simply a case of |
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| 17 | tabulating the revenue and calculating the direct costs of the operation. It may also be |
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| 18 | necessary to allocate some portion of the total overheads of our operation. |
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| 19 |
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| 20 | Kate continually refers to an ever increasing pipeline. However, that is not "Cash in Bank" and |
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| 21 | there does not appear to be any of those increases reflected in additional contracted revenue. |
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| 22 |
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| 23 | A major concern is our cash position, this has dramatically deteriorated partly due to losses |
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| 24 | incurred and the additional payment to the Silverlink. Unless the losses can be reversed we |
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| 25 | will eventually "run out of cash". I'm seriously concerned about previous comments made by |
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| 26 | Matt (our Money Man) - In the December webinar it was stated that there was a 4.5m cash |
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| 27 | outflow, caused mainly by 5m received early the next quarter. Total cash received for the |
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| 28 | December quarter was a mere 10.4m, meaning that actual cash received pertaining to that |
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| 29 | quarter, was only 5m, resulting in a substantial cash outflow (on that basis the December |
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| 30 | quarter cash outflow was overstated). Perhaps there were amounts received in the June quarter |
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| 31 | which could have been paid in the March quarter. When questioned about the impact of the |
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| 32 | prior 5m being paid in the March quarter, Matt responded by saying words to the effect "I can't |
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| 33 | remember that". Not the response I would expect from the CFO of a Public Company. I hope |
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| 34 | he is much more "on top of his game" in the next webinar. I am seriously concerned about |
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| 35 | the likely results for 22/23 (and subsequent periods) and I would be most grateful if these |
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| 36 | various issues were addressed at the next Webinar. |
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| 37 | Thank you, Bill Mitchell |
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(20min delay)
