Ann: Quarterly Activities/Appendix 4C Cash Flow Report, page-87

“Spenda is burning about 2million per quarter with a Net cash position of 4.4 million” - While the average monthly cash burn for Q2 FY25 is reported at 316,000, resulting in about 948,000 for the quarter, the assertion that they are burning 2millionseems exaggerated. More over,the net cash position of 4.4 million indicates that they have a runway based on their current cash burn that extends beyond just one quarter(Page 2),(Page 6). This suggests Spenda is not in immediate danger but is working towards reducing cash burn further.

“Spending 3.2 million to generate 3.5 million is not a sustainable model” - While it's true that expenses currently exceed cash receipts in a single quarter, it’s essential to look at the long-term trajectory. Spenda has shown significantgrowth in cash receipts, which increased 160% year-on-year in Q2 FY25(Page 2). Furthermore, they have already surpassed the total cash receipts from the entirety of FY2024 in just the half-year, indicating a rapidly expanding revenue base that may lead to improved profitability in the future.

“Revenue growth isn’t strong enough” - The company achieved record cash receipts with $5.49 million in total for the half-year ended December 31, 2024, which indicates a strong upward trend that could lead to sustainable growth in future quarters(Page 2). Even though they may not have reached all their ambitious targets yet, the current growth trajectory is promising compared to prior years.

“The management's promises have not been realised” (e.g., mentions of CF+, $150 million in transaction volume) - It’s important to recognise that startups often face delays and challenges in executing their growth strategies. The statement made by management regarding expected volumes and revenue may have included various projections that can change based on market conditions. Although they did not hit all targets, Spenda's ongoing efforts to enhance their services indicate a commitment to fulfilling these promises(Page 5). Communication from the management team also reflects a focus on adjusting the strategy to better align with operational realities and market needs.

“Results are being spun positively regardless of the actual numbers” - While every company aims to highlight positive developments, the metrics provided in the financial report clearly show substantial growth in cash receipts and strategic initiatives aimed at improving future profitability. Spenda has strategically engaged in market presence through initiatives like the SwiftStatement program with Capricorn and is expanding its product offerings(Page 1),(Page 6).