Ann: Quarterly Activities/Appendix 4C Cash Flow Report, page-10

Hat's off to the new Finance team, they are definitely cutting their costs. Staff costs had grown to $10M and have now been cut back to around $6M. Same with manufacturing and operations which grew to $9M and has now been cut to around $6M also. Research and advertising had been between $2M and $3M to support sales and boost customer receipts and this dropped to $170K in the quarter. The effects of this are yet to be seen but slashing your sales staff and advertising will no doubt impact receipts.

DEC23 Receipts: $8.8M, Expenses: $12.5M, BURNING: $3.7M, CASH: $30.2M.

SEP23 Receipts: $9.0M, Expenses: $16.6M, BURNING: $7.6M, CASH: $33.7M.

JUN23 Receipts: $10.2M, Expenses: $19.5M, BURNING: $8.5M, CASH: $32.9M.

MAR23 Receipts: $8.1M, Expenses: $24.1M, BURNING: $16.0M, CASH: $40.1M.

DEC22 Receipts: $8.3M, Expenses: $25.4M, BURNING: $17.0M, CASH: $56.7M.

SEP22 Receipts: $9.5M, Expenses: $20.0M, BURNING: $10.2M, CASH: $73.8M.

JUN22 Receipts: $6.7M, Expenses: $19.5M, BURNING: $12.8M, CASH: $84.3M.

MAR22 Receipts: $8.5M, Expenses: $18.7M, BURNING: $10.2M, CASH: $97.4M.

DEC21 Receipts: $5.6M, Expenses: $20.6M, BURNING: $15.0M, CASH: $108.4M.

SEP21 Receipts: $9.1M, Expenses: $14.9M, BURNING: $5.6M, CASH: $126.7M.

JUN21 Receipts: $6.7M, Expenses: $12.6M, BURNING: $5.9M, CASH: $32.0M.

MAR21 Receipts: $6.6M, Expenses: $12.3M, BURNING: $5.8M, CASH: $37.7M.

When you look at customer receipts story in the quarterly cycle it really hasn’t changed that much over last 3 years. Not to the degree expected with all the telco vendors and partnerships announced.

Receipts:

MAR21 $6.6M, MAR22 $8.5M, MAR23 $8.1M.

JUN21 $6.7M, JUN22 $6.7M, JUN23 $10.2M.

SEP21 $9.1M, SEP22 $9.5M, SEP23 $9.0M.

DEC21 $5.6M, DEC22 $8.3M, DEC23 $8.8M.

Also when you account for the SPEIK acquisition which added around $12M in annual revenue, and you include revenues from NOTIV and CALLN acquisitions you might surmise that anywhere between 30% and 50% of current receipts are from these acquisitions and not the core DUB call recording product.

In my view all of this calls into question the ongoing commercial viability of the DUB call recording product. Hence the new focus on AI. The cost cutting is definitely helping narrow the gap between receipts and expenses, but I assume the goal here is to not just cover your costs and hope to break even.