Just my notes on the Q & A as everything else covered in the...

Just my notes on the Q & A as everything else covered in the announcements.

Q & A

Any major ann. that was Jamaica – working on more projects in that area.

Why so little progress in US (bearing in mind major S/H are US) – making progress but have to get salespeople & sales cycle is 6mths – 2yrs. FLC is hiring new staff & agents in US – FLC working diligently, it just takes time.

What are the barriers to securing contracts in US – FLC has to get in at the early stages to get equipment designed into project = delays of 6mths to 2yrs.

What is interest in Taiwan

A great deal of interest in Taiwan – MABR & Desal systems i.e., Chip manufactures water reuse systems with FLC MABR followed by a MBR unit

Caribbean –not speculating but sees opportunities in resorts.

IC O &M? - bids have commenced

What is the US strategy – FLC hiring qualified new staff & agents to work with design engineers & state WWTP – opportunities with SUBRE & aspiral. Just had as how in New Orleans Water Environment Federation which had state regulators asking FLC for specifications so that they could approve it & include in their specifications on projects. Strategy is the same as others for last 40yrs– to get with the engineers & regulators & show them our products to get them specified into a job.

Production capabilities in US?

Can do desal & steel tank manufacturing – need to get manufacturing tech from FLC China to build in US which they are well into & working diligently at.

IC completion – Between April & June 2023 after which the O & M starts& can be bid for.

RI Comments

IC continues to be cash positive even though Euro has devalued – revenue has dropped in EUR but so has EUR expenses relating to that project dropped so not as bad a situation as it appears to be.

Order time in US slow for municipal tenders which are a lengthy process, but with commercial customers can be a lot quicker. FLC actively building sales/support team.

New Orleans Show – RI asked Tom to expand. The show is the largest Wastewater show 15-20000 people attend – this was one of the biggest Tom has seen. Tom spoke with reps & regulators with positive leads. FLC name not well known, but a lot of people asked questions – good PR& FLC name recognition.

IMO -a pity about EUR deval affecting revenue/ EBITDA, Covid lockdowns in China still impacting operations, cashflow negative due to timing & large payments to vendors.

Overall a more informative & positive update IMO