Ann: Quarterly Activities/Appendix 4C Cash Flow Report, page-2

They explained quite well why it was a tough quarter for cash flow (see below), and it sounds like the coming quarter will be much better.

But with only $1.5m pounds in the bank (probably around 1 - 1.25 quarters of funding), ONE really do need to get some funds into the kitty pretty quickly - and they did say in the 4C they are looking at avenues for funding.

I really like this business in the long term, and have done well out of it in the past 12 months - so would like to re-enter at some point.

But feel they do need to get much closer to consistent cash flow break even - which I thought they were until this report.

Maybe just a "final blip on the radar" before their financials really hit their straps?

The 4C report stated:

Net operating cash outflows were abnormally high for the quarter at €3.45m.

This incorporates the following:

• Lower than expected receipts from customers of €1.43m. €0.78m of receipts which had been forecast for receipt in Q3 were delayed due to Covid operating conditions but subsequently received in the first two weeks of Q4 2021.

• A number of unusually large payments were reflected in the quarter:

Final stage payment of €875k was paid against the delivery of 2,000 Social Mobile All In One devices. These devices have been on-sold to specific customers with sales proceeds due to be received in Q4 2021.

Annual lump sum D&O insurance premiums of €730k were paid in the quarter.

• Payments for staff costs in the quarter were €2.27m, up 2% on the prior period as personnel numbers have increased in our sales and deployment teams to resource new CXP Cloud Enterprise sales.

• Administration and corporate costs of €0.80 million were slightly up on the previous quarter as travel costs increased as Covid-19 travel restrictions were lifted and business travel resumed in the US.

The Company’s cash balances as at 30 September 2021 were €1.5 million.