The Company continues to see solid demand for the 7AF HMG...

The Company continues to see solid demand for the 7AF HMG grinder with multiple orders
scheduled to ship by year end. In addition, subsequent to the end of Q2 the company has
secured a letter of intent for a 6EZ scheduled to ship in early Q4. Finally, the Company’s
other revenue is growing in excess of 40.9% YOY and robust growth is expected to
continue in the Q4’23. Relatedly, there are currently US$5.18 million in confirmed backlog
orders being processed.
It is currently anticipated that substantially all of this backlog is scheduled to ship in Q4’23.
Following shipment of the equipment, the Company anticipates a full conversion of the
order backlog into realised revenue, and recovery of outstanding cash receipts from those
customers.
In addition, the company continues to look for opportunities to reduce expenses. Excluding
one-time costs associated with debt restructuring and severance, Q3’23 was the 5th
consecutive quarter of sequential operating expense decline. Due to expense reduction
actions taken in Q3’23 the company anticipates expenses to decline again in Q4’23.
The previously mentioned increases in demand and backlog conversion as well as the
reduction in expenses give the Company confidence in improved net operating cash flows
in subsequent quarters.