Ann: LIFX Acquisition Update and Issue of Placement Shares App 3B, page-12

LIFX financials can only be included from the date of formal closing of the deal (i.e. today).

However, whatever the financial performance between when the proposed deal was announced and today, for sure they will release and tell us the monthly or quarterly revenue and net profit growth rates.

I have not thought through the acquisition accounting in detail, but you would suppose there is a balance sheet value versus what Buddy pays, the difference being goodwill which will be capitalised and stay as such (and no prospect of this being written down when they are growing 70%-10% YoY revenues.

To that end, the performance of LIFX since the date of announcement that Buddy would acquire them, until the day of completion (today), to the extent that it is a net positive result, then it would reduce the capitalised goodwill. But to be honest this is all fine tuning. We now need to watch how LIFX revenues play out and if indeed their management can hit their stretch target which has a share based kicker for them (was it US$70m by end of 2019 calendar year from memory)?

Ohm performance will be the one to watch as well, but for all the huff and puff, once BUD starts reporting these combined higher revenues and cashflows and then forecasting net positive cashflows .......then that is when the insto investors will arrive and the re-rate will begin.

I feel very good about the closure of this deal as well as the future of Ohm. On a combined basis, this is now a very very exciting company.