Firstly, I like CXZ's commentary around spending (see below) in...

Firstly, I like CXZ's commentary around spending (see below) in the outlook section. The way I read this is that Aaryn understands that spending is necessary to generate growth (and revenue diversification), which will re-rate the business. But, in achieving this, the company will be prudent around managing cash and continue its ethos of tightly managing capital. I imagine we may see future years of minimal, zero, or slightly negative profit as the company works to secure new deals. They will probably run the business as cash flow neutral while they are etching out growth in the market. I like this approach because growth (a new OEM etc.) is what will generate a step-change in the valuation of this business, but it can be achieved without running the business to the ground and requiring a capital raise in the future.

"The Company notes that, consistent with its recent Quarterly Updates, it continues to invest meaningfully into the growth of its operations in the form of Research and Development, with US$577,493 invested in FY21. With much of this discretionary investment expensed through the statement of profit or loss, there has been, and will continue to be, a meaningful impact on reported profitability for the financial years just-reported and subsequent. This is by design, and Shareholders are encouraged to carefully examine the revenue and gross profit analysis presented at Quarterly Updates.Guidance on the quantum of Connexion’s future discretionary investment is not provided, other than to say that it could potentially exceed the amount of positive operating cashflow during subsequent periods. Should this occur, however, it is unlikely to be material relative to the Company’s available net cash.The current Board and Management of Connexion have developed a consistent track record of tightly managing invested capital and delivering a satisfactory return on invested capital. This ethos will not change. Instead, any increase in investment into the business will reflect a clearly defined and examined opportunity for the Company to strengthen its competitive moat over time.As demonstrated at the November 2020 AGM, Connexion has developed and implemented a clear operating model (“Embed, Integrate, Generate”), sales strategy, and corporate strategy (“Come for the tool, stay for the network”). The Company is committed to expanding within GM, within alternative manufacturers, to enhancing its own platform capabilities, and to integrating with complementary software partners.As of the date of this annual report, the Company’s progress remains consistent with the plan presented at last year’s AGM."

Secondly, it is nice to see the T20 strengthening further (see below). No member of the T20 has sold since the GM contract was renewed for a further 5 years. Instead, since that date, we've seen significant buying by the T20 with two new substantial holders joining the register -- Mr Vaughan Thales Kent and Michael Kephala (Graham Newman Pty Ltd & Berkshire Superfund). The share price was once again closed down in the closing auction to 1.8c today, which suggests to me that accumulation is not yet done. Let's see how the next month or two plays out... having broken out of the sideways channel, the share price now appears to be in an uptrend.