Ann: Appendix 4C - quarterly, page-3

If we go back 12 months, I doubt whether the most rabid naysayer would have predicted that GCN could possibly produce zilch revenue for three quarters running. So not a single advert paid for. Not a single aircon unit sold. No fees paid. There are not many companies in business that have managed to sink to that disgraceful level. I am talking about zero income, not making a loss while actively trading.

I thought that the comments on the quarterly lacked something of the usual Baron Munchausen quality of exuberance. Nevertheless there are three statements that IMO are classic.

1.
The Net operating cash outflows for the December 2014 quarter were only $62,947 versus $527,077 for the September 2014 quarter.

Is that a boast or an apology? It looks to me as if a scorched earth policy may have made the production of revenue nigh on impossible.

2.
However, the Company is continuing to develop its IPTV platform uctv.fm to generate new revenue by adding pay per view content to be distributed around the world including the China market. Go Zhongshe will be able to facilitate the introduction of Western entertainment pay per view entertainment content into China for uctv.fm on multiple platforms particularly on smartphones.

We have had these sorts of promises for years, but uctv.fm continues to languish as a moribund website that earns no revenue. Visit it, if you don't believe me.

3.
During the December 2014 quarter, the Company received 16.67 million Priority One Network Group Ltd shares as license fee for the Undercover channel on uctv.fm. This fee income has contributed important revenue to the Company for the half year and full financial year of 2014/15.

In what sense are the Priority One shares 'fee income'? And does the phrase 'has contributed important revenue' indicate that the next quarterly will not again be reporting zilch revenue. I ask this because I can't see that any content has been added since March 2014 to the website in question

http://www.undercover.fm/

So where has this important revenue already come from?

Finally- Go Zhongshe. It might be wise for GCN to stop prefacing its enterprises with 'Go'. They run the risk of image damage - 'go' as in 'disappear', not 'go' as in 'progress'.