Ann: Appendix 4C - quarterly, page-41

If one ignores qtr to qtr. We need to take into account q4 is the strongest quarter. Q4 2019 did less revenue that Q4 2018. One year has past between. So they have to me gone backwards. Revenue should have been higher than Q4 2018. Q3 is a weaker qtr than Q4 and there was just 7% higher revenue versus 100% between Q3 and q4 2018.

This is why it got belted. Q1 is weaker than Q4, so they will not get 2m revenue Q1 2020.

Operating costs were high because they pay 50% of revenue. Ie Q3 2019 was 2m, so 1m will be commission out. So Q1 2020 will have 1m out for the qtr just gone.

You'll see on low revenue qtrs, the preseding qtr has lower op costs and visa versa.

They should really be putting that into cogs, cost of goods versus operating cost as its a fixed cost against revenue. Not really an operating cost as such.

Ie there revenue is half by the 50% they have to pay out at the top.

It in a way hides the actual cost of getting the lead by putting it in operating expenses as its really a cost of goods expense, just as freight and packaging is to a retailer.

Hope I explained why operating costs are high. 1m is commission. Its a lot as they only get to keep 50c in the dollar revenue and that's pre expenses.

Lets hope next qtr is better.