Ann: HTG Secures Initial Order with Five-Eye Defence Customer, page-18

Seaforth,

I hadn't had the opportunity to watch the recent video update with PG and The General until yesterday. I was in the middle of it when the Five Eyes announcement dropped.

In light of that, I thought I'd post a few thoughts. Most of this is transcript from the video - mainly as a reference for all shareholders, and potential investors who haven't had the opportunity to watch the video.

It's obvious a lot of work went into this presso and getting it right. I thought Paul spoke clearly and well, and I take back my initial cynicism about this initiative. The company has clearly listened to shareholder concerns around communication. A few of things stood out.

PG's comments around the massive increase in global brand awareness - particularly as it relates to the European Defense deployment.

The references about paramountcy of data privacy and data security.

The multiple references to the opportunity represented by being in the cloud, especially the comment about data management and data content opening up new revenue streams.

The fact that they've had NS2 being successfully being in a cloud environment for 5+ months

Coming on top of the European Defense deployment, there can be no greater validation of Nodestream's privacy and security efficacy than the Five Eyes deployment. If we've had 22M hits up until now, Five Eyes is really going to make people sit up and take notice. To paraphrase Paul, the technology works. If it didn't, we wouldn't get within cooee of any Defense organization, let alone the Western Alliance's premium SIGINT networks, Five Eyes. Perhaps more importantly, Harvest said from the get-go that deployment to Five Eyes was a primary goal. Job done. Can't think of any Australian technology company, microcap or otherwise that has achieved the same, let alone in such a short space of time.

It is a huge win and signals a major inflection point for Harvest. Especially when you consider Paul's comment about the need to operate by stealth around how much they put out to market re who they are working with. The Five Eyes announcement is a clarion call if ever there was one.

As for the Nodestream opportunity in the cloud and the comments around data management and data content, we all know that the cloud resides in massive global data centers from which the data comes and goes. In terms of data/content management combined with privacy and security concerns, that's got me wondering whether Harvest have an opportunity with the actual Data Center operators themselves - NS2 embedded at source, so to speak. Guess we'll have to wait and see, but an intriguing prospect. If it were to happen, game on.

Seems to me Harvest is at the vanguard of remote data operations and in a prime position to profit from the way companies operates in their chosen sectors.

Anyway, here's the transcript. Be interested to hear other's thoughts.

Jeff Sengelman: The difficulties aren't swaying us backwards. We're leaning into it and going forward. By all of the metrics we're looking at, we have continued and sustained confidence in the potential of this company and its technology. The Board has no doubts about that at all.

Paul Guilfoyle:Our technology is complex.It's taken time to get to this point, to be able to bring our protocol into a cloud environment where it can have huge growth potential enabling customers to self-onboard, self-grow and literally connect from any media source to any media source from anywhere in the world to anywhere in the world simultaneously.

It's a huge ask. We've had our platform under test in a cloud environment for over five months. So we know it works. Our focus is now moving towards the front and back-end applications, what the customer sees, how they onboard, how it works, and the really important things around brand recognition.

In the past 12 months we've had huge interest in our brand awareness globally. The important thing to note on brand awareness is that Harvest activities have attracted over 22 million views worldwide. That's a massive push, a massive increase for a company of our size.

Notably in this brand awareness is deployment to the European Defence sector, to which there will be further updates to the market as we move forward.

In the past 12 months we've learned a lot about our industry, our customers. We know now that some of our bigger customers take time to convert. When you are talking about transactions that have a fundamental change in the way an organisation operates, they need to be able to trust the technology they're installing within their business.

They also need to map out that transaction of operability within their business.

We've also learned that to scale, we need to be in the cloud. That's why NS2, our cloud platform, is such a priority. Our customers need the ability to self-onboard to gain access to the technology in what is fast becoming the industry norm - cloud applications.

The beauty of the NS2 cloud app is that it opens up new revenue streams in data management and content management.

As a small company working in emerging markets and emerging technology we have to be careful about how much we put out to market. We still have to be able to operate under a component of stealth to ensure we're not giving too much away about who we're working with and what we're doing.

This is really critical for a microcap tech company. It's really important to make sure we manage that carefully. We're not a Google or a Meta, or a Microsoft. We're finding our feet in an emerging market in very challenging times. But I know we have the team and we have the technology to front up and meet that challenge.

As we move forward it's really important to understand where we see the opportunity.
We know that the requirements to transfer data are everything.
We know that the infrastructure is not keeping up with data requirements.
We know that the requirements for data security and privacy are everything.
We know that at the back end of Covid a lot of organisations are looking for new ways to conduct their business. They're looking for ways to reduce their carbon footprint, to reduce their costs, to connect their workforce anywhere in the world at any time without travel.

This puts an application like Harvests protocol in a prime position for growth.

If we look at all the sectors where we have seen growth in the past 12 months - Energy, Maritime, Offshore, Defence, it's plain to see all these requirements coming true.

That's why our focus is on these sectors.
All operate in remote environments.
All completely rely on a communication network that delivers.
They're all looking at new ways to conduct operations with autonomous assets.
All are looking at ways to connect their workforce without going to site.

This is why we see our growth in revenue in these areas and why we're going to continue to see revenue growth in these areas.

We're really confident as a company that out strategy in Phase 2 as we go into Phase 3 has proven to be correct. Our focus within the sectors has proven to be correct. With everything that's going on in the market and in the industry, our technology and our company are well-placed to grow into the future in those sectors because we solve a lot of their problems.

We're extremely confident about what we're doing moving forward and our growth trajectory moving foreword.

We know our customer's requirements are becoming evermore complex.
We know the requirements to send data is ever-increasing.
We know that everything we do on a daily basis requires more data, whether it be from mobile phones, offshore assets, unmanned assets, surveillance cameras, so on and so forth.
We know that the requirement for privacy and security is more important than it's ever been.

Businesses are looking for ways that they can connect multiple people on multiple sites across the world using different networks. This is a complex requirement for businesses as they redefine how they operate. The requirement of demand on bandwidth is growing all the time. Within the satellite sector it's more congested and more contested than it's ever been. This puts the app that Harvest has developed into a prime position for growth, and we're seeing that in our customer networks now.

The problem statement across all these sectors is largely the same.

They all require data.
They are all working in areas where data is at a premium.
They are all working in areas where they are trying to reduce their carbon footprint.
Thye are all trying to reduce their Health and Safety exposure for their people.

Holistically, they are all trying to redefine how they operate.

Looking to uncrewed assets - vehicles, vessels, drones, data apps, smart buoys - these all have the same requirements in these sectors. This is where we see our biggest area of growth. A number of the conversations we're having with our customers at the moment are predicated on these exact items.

In closing, our priorities are plain - increase revenue and taking our technology stack into the cloud for increased scalability. Phase 2 has been a journey of income diversification, customer diversification and industry diversification. We've been successful in achieving all three of those goals. Phase 3, the goals as as per our priorities - scaling our technology and increasing our revenue. I believe we have the team and the technology to achieve our goals.

Both the team and the Board at Harvest are hugely confident in our strategy and our ability to deliver moving forward.