Ann: EN1 Q3 2019 Appendix 4C & Commentary, page-11

Loan is good for the business.

At approximately 18% interest rate, EN1 can use the fund to generate 35% gross profit margin, that is each dollar invested will generate $1.54 (gross profit = $0.54 ÷ $1.54 = 35% gross profit), recycled average 5 times per year, so each dollar if fully reinvested to working capital will generate 1.54 × 1.54 × 1.54 × 1.54 × 1.54 = 8.66. That is 766% profit versus 18% cost of funding. This is the MAGIC FORMULA to make a lot of money if EN1 has the funding to put to working capital for ads inventory and if EN1 can get more publishers and ads buyers to work with us. NetZero payment programme is doing exactly that which is to get more publishers and ads buyers through the incentive of early payment (netzero).