Ann: June 2024 Quarterly Activities Report and Appendix 4C, page-4

I have compared quarterlies for last 2 financial years. You can see the impact of 'asset heavy' model starting from September 23 quarter, when the interest expenses start to make their way through the reports. Receipts have been growing 36% CAGR, while payments have grown a lot more slowly (this is good). However, interest payments on asset finance facility kicking in and stalling overall progress towards operating cashflow breakeven. Trend is there though... but questions remain about how long it will take, and what financing we will need in the meantime. We've actually been in ~$450k negative quarterly operating cashflow for about 2 years now, so that hasn't shown much improvement.

Biggest question mark for me is the convertible notes due in May 2025 for $2.85 million. Conversion price floor of $0.036 seems very far away, which means they will need to be repaid. We won't have cash, so I assume we will need to raise capital (the exact outcome we were trying to avoid by issuing the CN) at these prices. Assume our first port of call is iPartners, conveniently for them? Did they bend us over a barrel by requiring the capital note to unlock the second tranche of the asset finance facility? Is this too cynical? Are they about to effectively takeover the company (dilution would be astronomical and they would own around half of the company)?

It looks like we banked on the share price moving materially higher over the 18mths of the convertible note, but have been left high and dry by the market. What are directors/management doing to engage investors and increase on market buying? There's a great story here, with two years of consistent execution, and surely we don't want to raise capital at these levels. Changing my sentiment to Hold until some of these questions resolved.