Ann: Preliminary Final Report-PRO.AX, page-9

First things first, I'm not an accountant so my understanding is not great.

In this situation it looks to be partial write off of intellectual property. I believe the intellectual property (which is an intangible asset) increased significantly (page 32 of report) due to the emite acquisition. Therefore this will get written off over time. It will always be a non-cash item.

It should always be considered that without development, intellectual property will become worthless over time due to better things being developed. In this situation I am comfortable because it was associated with an acquisition that looks fairly priced and should do the company well over time.