Ann: Q2FY24 Investor Update, page-7

Looks like the market has got the negative sentiment right on this company. Capital raise imminent. No internet customer growth for 18 months. cloud gaming business is a hoax.

1/ company deferred paying $1.2m of expenses into the next quarter – to present a higher cash at bank balance, and to manipulate a positive cash flow from operations for the quarter, the company deferred paying ~$1.2m of COGS in Dec 2023, to then pay them the following March 2024 quarter. Essentially, the company borrowed $1.2m from their suppliers. Every quarterly period there has been $3m to $3.3m in COGS, on the same $5m in revenue. Yet this period only paid cash of $1.8m in COGS. To normalise the numbers, the cash at bank Dec 2023 should have been ~$5m. And then when you add in the forecasted loss for this current March 2024 period, you can see how there’s ball park $3.5m cash at bank 31 March 2024. So you can see how there is a capital raise any day now. Around May is when the $1.6m in Capex is paid for the License Spectrum (which btw isn’t hardly even used).

Is this capital raise discussion happening behind the Chinese wall the reason why euroz has put 5gg on the black-out list? No updated research report for Dec 2023 quarterly. Similar behaviour to the April 2023 capital raise….

2/ zero growth in telco internet customers for 1.5 years – at September 2022, there was 17,000 internet customers. Roll forward 18 months, and by Dec 2023 there’s only 17,100 internet customers. Each period, the churn rate is 100% - for every new customer acquired, an existing customer is lost. Hardly any way to build any business. Millions of dollars of shareholders capital torched, winning new customers for then another customer to leave. Is this the best use of scarce shareholders capital?

Bell potter research report heavily reliant on forecasted 50% growth in internet customers to ~30,000 customers over the next 1 to 2 years. Is this assumption accurate based on zero growth for the last 18 months?

3/ nvidia cloud gaming only has ~10,200 paying customers. $400k revenue, divide by 3 months, at $13 ARPU. No where near the 400,000 users to 490,000 users that get bandied about as the headline figure. So cloud gaming users are just over half of the users to the internet business. Whilst on a revenue, the cloud gaming is only 10% the size of the internet division. No where close to the exponential parabolic growth this was first pitched to investors in 2021 and 2022. complete Disallowed based on these numbers.