Ann: Appendix 4C - quarterly, page-10

As per my previous post, I have been loading up on PYG shares over the past few weeks.

It is clearly growing very strongly, it product suite has expanded a lot, and this should start to show through in the cash receipts going forward.

It also has a very low market cap when looking at current revenues.

However, based on the numbers in this 4C, can I play the "devils advocate"

The 4C showed nett operating cash inflows of $1,056k - but $499K of this was from government grants, and another $184k was from "temp staffing cash".

Then there is another $1,054k used / nett outflows in investing activities - of which some were for the recent acquisition (fair enough), but a huge $773K was for Intellectual Property?

A quick look back at the previous report also showed a huge $ figure for IP?

Does anyone know what this large IP spend is for - surely it can't all be for improving the platform / systems?

So even though the "headline operating cash flow numbers" look awesome in the past few 4C's, the reality is that PYG are not really accruing any cash at all?

For example, we started this quarter with:

Cash of $2,122k
We then raised $3,158K
Then we had positive operating cashflow of $1,056k

So should have had a total of $6,336k, yet we finished with cash of $5,276k.

I just want to stress that there was some legitimate acquisition costs in this quarter, and clearly PYG should have rapid growing cash receipts going forward.

But that large quarterly spend for IP (which is shown in "investing activities" on the 4C) is having a big impact on the cash PYG has.

Be great to get some thoughts from others on this. Thanks!!