Ann: Company Update, page-112

I have read the Company Update now a couple of times and also compared to past investor presentations on their strategy.

There strategy has evolved but in a positive way where they can be better positioned to meet market opportunities.

The IOT market is still in very early stages so they always were going to be some time away from being cash flow positive. The latter should not really matter if they are making positive progress as last time I checked not being cash flow positive not hurt companies like RAP.

There 3 prong market strategy of 1. Tap (and focus on Enterprise Solutions) 2. XPED App and RML and 3. Gateway Software and Cloud Services with examples given appears to be fairly solid based on my own knowledge and understanding of the IOT space and opportunities.

They need to raise capital to cover their continued developments in this space and cash burn given probably can't expect to be cashflow positive for what I would have thought is at least another 2 years which is not unreasonable given still early days for IOT space but with very big prospects. But certainly with the strategy outlined, and now with the 0.001 cent loyalty options they look to have found a way to ensure they get a big bucket load of cash from the bonus options being exercised to provide most of the funding needed to move to being CF positive, as achieve only 1/2 of what they have outlined in the update in terms of timelines I can't see how they can't but not have these bonus options in the money.

Yes I wish some of the directors would take more performance shares than big wads of cash in terms of remuneration arrangements to feel their incentives are more aligned to building shareholder wealth. That is still a bug bear but bigger picture at the moment appears to be watching what unfolds in the next 6 months as like I said if half of what they have outlined in last weeks company update comes through I think there could be some happy shareholders.

But yes we need to see this translate into revenues coming through the door which hopefully by end of year we are seeing with increasing cash receipts from completed deals.