Ann: Progress Update, page-3

United Kingdom
KNM is establishing a subsidiary in the United Kingdom following introductions last month to the UK education system.
The Company will provide further details of the UK subsidiary structure and board and management composition as the
structure is formalised this quarter.
Commentary
Chief Executive James Kellett said “Our team has been working hard across all markets and we are encouraged by the
progress being made. The appeal of KNM’s Special Needs content internationally has been nothing short of outstanding,
and we are well on our way to establishing KNM as the global Special Needs education content provider.
“That said, our most important and immediate focus is scaling up our United States operations with considerable work
being undertaken to establish a larger, sustainable and recurring revenue base. This includes implementing state-wide
sales strategies and broadening funding channels throughout the US. The Company has a strong balance sheet,
continued low monthly cash burn, and a growing and deep sales pipeline to deliver on its objectives in the US and now
into Asia and Australia. We expect to provide more context around our US strategy next week.”