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

It could be argued that the half yearly margins were skewed due to a bumper 2nd quarter.

Based off operating costs in this quarterly, the company did not make any profit which is why I think the next quarter is crucial. If sales do not pick up, there will be a loss for this half as operating costs are running at approx $5m per quarter.

Don't get me wrong, I am a supporter of the company, but you only need to speak to some dispensaries to see the flood of cheap product hitting the market. It just makes life harder for ECS as patients have a huge range of options available - independent of price.

In your own chart (excellent btw) above, you can see the company move from a loss to profit in Q124, but unfortunately, the trend is going in the wrong direction where opex is now rising at a faster rate than cash receipts.

The market wants to see consistent improvements in sales and profits - we will need to wait another 3 months to see if it improves otherwise more investors are just going to push this down further.