Ann: Quarterly Activity Report and Appendix 4C, page-5

Hello everyone,

My observations of the Quarterly Report.

• A solid report showing the company continues its organic growth at a fair clip 50% H1 YoY.
• Achieved a positive operating cash flow position but you should discount the grant monies received ($133k) giving a more realistic positive cash flow figure of $20k. Last quarter was a loss of -$358k. A turn around of $338k which is impressive. I think we should expect more positive cash flow quarters from here on.
• Revenue target for this year is $6.5M. After H1, our run rate sits at $3.071. Mathematically, we are behind $179k at the half way mark, so our run rate is close to the company's stated goal but not quite there.
• Admin/Corporate costs dropped $243K H1 YoY. This is a significant drop, I would like to know more about this; ($856k H1 '22 - $613k H1 '23)
• Staff costs are similar to last quarter.....gives me a little concern that we are not attracting the right talent.
• I had the last SMSF trustee figure at 18,000, so a net growth of 2,000 plus for the quarter.
• Don't under estimate the value of cost controls in business management. Boring as it may be, we should be appreciative of such diligence in the way management have controlled the purse strings. Cost-to-income ratio management is impressive.
• Nice to see Advertising and Marketing spend increase $60k (up from $20k last qrt). I hope the spend is targeted for a specific outcome. It will take some time to see any results.
• Reading between the lines; under the heading "Further details on key activities for Q2 FY23" is STP2 data feeds to support franchise groups and Ahpra credentials to support Chemist retailers. Could we expect something to happen in these markets in the near future??
• This company is on a much more solid footing in both business management and projected income growth than when it was trading as IP1. All credit to current management.
• No webinar this quarterly???

Things to consider that will further bump our revenue along this year;

1. News on the Link group contract and its actual "go live" implementation.
2. Our relationship with Deel Inc since they have taken over the Pay Group whom we had an MOU.
3. White labelling of Wrkr Ready and its humanless onboarding features that I think would be very attractive to SME's and Corporates alike.

Ian