Ann: Annual Report to shareholders, page-6

I am disappointed but see some light at the end of the tunnel. There are a number of one-off reasons for the increased costs

1. The increase in commissions in FY24 ($450,000) may be largely a one off due to the signing of Devo
2. Prophecy plans to introduce a new hosting platform that could save $800,000 per annum
3. Foreign exchange losses were $200,000 this year is not likely to be recurring.

Additionally, I believe Prophecy will increase revenue in FY25 due to a number of reasons

1. In FY24 Prophecy signed its largest ever client (Devo) with an anticipated increase off ARR of $5 million. While work for $1.8 million of ARR has already been started I understand that, due to billing cycles, Prophecy will not receive revenue from Devo until this financial year. This will create increased revenue in FY 25 that was not paid this year. It is not likely that all the $5 million will flow into revenue for FY25 but perhaps $3million could.
2. Revenue from emite and the non-Devo branch of snare grew approx 20% to $24 million in FY 24. It would not be unreasonable to see a similar increase in FY25.

Do your own research but I believe that FY25 could be substantially better with some of the one-off costs not recurring but increased revenue. That could significantly reduce the FY25 loss.

Surely that would account for some of the increased costs for commissions. I'm a strong hold and see the potential for this undervalued SaaS business.