Ann: Quarterly Activities/Appendix 4C Cash Flow Report, page-6

Looks like they hit peak social media advertising and marketing in Oct with an impact on the bottom line, so the marketing spend was less in Nov-Dec. This indicates a point of saturation on new users based on e-commerce drive. I guess this is why they are now looking to retail in Australia. I always expected saturation to hit rather quickly in Oz especially considering the rapid rise on sales. It is a unique product so from here on it is all about keeping the current clients with growth but albeit small growth.

Can someone explain revenue? is it a typo? Receipts up which is great but if the revenue number is right then that may have a dramatic impact on receipts this quarter.

Large inventory build we are now holding greater than $4m of Kava in sales, which will be paid back down over the coming qtrs. reducing operational costs. Considering the build the cost control is looking very strategic and well managed which is a huge positive.

Alot of the company's success now hinges on these Country manager appointments in the US and Australia. If they get either one wrong, it will be disastrous for the company especially with Ant exiting the CEO chair. The wording in relation to Ant staying on as Exec Director during Feb is also concerning, I hope this is also a typo and that he will be staying on as an Exec Director for the foreseeable future.

The US is the key. If the R&D, the taste and the effect of the new products are on point we should see that next phase of growth continue with those 40% qtr. on qtr. growth rates we had seen here in Oz last year.

We really need an investor call update from the team in the next couple of weeks.