Ann: Quarterly Activities Report, page-2

I emailed the company yesterday with a few questions and got an immediate response!!!  Things have really changed in that regard.

Here are the highlights of the return email--

Our Total Assets = $65.6m,less $7.6m cash,  less $6m other assets (eg PP&E etc)  = ~$52mloan book

TheCash outflows for the next quarter is $1.346m as forecasted, but it does notmean our cost for next quarter is 1.346m, as we are on an accrual basis andcash paid in the period does not necessary related to the cost for that period.Please note that the 4C does not reflect accruals nor receivables as the 4C ispurely cash transactions  during that period.

Staff costs will come now that founders have reduced their costs hence the announcement saying $500k PAsaving.

 

I mightalso add

• The revenue is made up of cash and non- cash items. What Is not shown on the 4C is the capitalised revenue. You could assume that non cash revenue is more than 50% currently of the cashflow revenue
• That a Negative Net Cash position is good for a lending company as this means that our lending book is growing faster than the cash sitting on the balance sheet Note 1.9,
• Under our Trust Deed we are required to have 10% of total liabilities in cash plus hold additional funds for safe keeping. You will note 5.5 that cash decreased from $12.7 to $7.6m which is good as we didn’t want to have idle cash sitting on the balance sheet. There is a grey areas of how much cash we must retain above 10% in case there is a run on the deposits however we have driving loans higher this quarter.