Ann: March 2016 Quarterly Report including Appendix 4C-IOT.AX, page-9

There are some really great things in here, this has exceeded my expectations.

1. The fact they can produce 10,000 per week with the ability to scale up to 50,000 by September, tells me that between now and September they really do expect to be producing 10,000 per week. By what it doesn't say, it tells us exactly what we've been wondering. And then in September they expect demand to ramp up to 5x. Wow. That is fast, and that is a lot of revenue. By then the SP will not be anywhere near where it is now.

2. Distribution in United States, Canada, Mexico, Japan, Australia and the United Kingdom. That has huge volume potential. United stated is huge just on scale and distribution opportunities alone - remember we don't even need to sell it to the end consumer in retail distribution. Just the retailer. How many stores does Walmart have? Thousands. And Japan will go nuts for this.

2. The marketing team would not be going to the resource expense and COGs expense of differentiated packaging if they did not have solid global distribution near completion (at least). You would not build in the risk.

3. Max Markson is best in the PR business. Period. They have called in the big guns, hence all the press we are seeing. And they haven't even started on the watches yet - the roam-e is one thing, but those watches have HUGE mass appeal. Look at how huge apple is. But not everyone (in fact most people) are not an apple consumer. An apple watch is a luxury good. It is well known that price was an issue - hence they took the retail price down after launch. There is huge scope for incredible volumes of a mass market variant. Who is really doing that? Noone except for us.

4. Um, Roam E + Smart watches - global distribution in Q2 (10,000 pieces per week) & Q3 (50,o00 pieces per week, right ahead of Xmas!). We are already half way though Q2. They are scaling this and FAST. They sound very confident that serious revenue is imminent.

5. $282,000 revenue already - very happy with that! Am i right that that is not even for a full quarter?

Lots to like here, and a clear pathway to revenue in the very short term that warrants a MC many times what we have now. Like it.