Ann: December 2021 Monthly Appendix 4C, page-116

The latest debt deal with PFG was my realisation this company was likely a dead dog. It may have also been the reason why the independent directors walked out. The only reason PFG had BUD over a barrel was due to incompetent management and reckless allocation of capital. Reflect on the series of events:

1. DM arranges PFG to refinance the Eastfield debt and had just completed a massive cap raise.
2. The refinance was completed in early Jan 21 and BUD was "apparently" cashed-up.
3. By the end of the qtr, BUD was broke again.
4. Investors didn't even get a chance to see how bad things were because the company went into suspension before any financial reports were released.
5. After months DM announces the "refinance" with PFG. But when you have to pay loan shark interest rates, plus more than 50% of the loan balance in fees it is a clear sign that the Directors are not acting in shareholders interests, but their own. If this is the best deal you can negotiate, then it's not a deal worth making.

All of the evidence since points to the likelihood that LIFX sales were never that good, and despite a burgeoning smart light market they continue to lose market share to cheaper and more reliable products. This loss of market share will result in loss of dealer distribution agreements (watch this space for Best Buy to cancel) as it is more profitable and easier to shift other brands.

Maybe the patents are worth something, but the only one who is likely to benefit form that will be PFG because DM doesn't know when it's time to quit.