Ann: Quarterly Business Activity Update and Appendix 4C, page-161

Looks like an extremely positive March ended quarterly report with an annualised $8mil revenue from Mobile Enterprise services at about 45% gross margin netting IOU gross profits around $3.5mil p.a annualised before factoring in any material PPI and BNPL financials which are now being generated in this current April to June quarter and beyond.

BNPL progressing very well with soft launch and integrations with 3 large NON-Competing merchant networks now complete with a combined pool of up to 75,000 non-duplicated merchants which has a combined merchant TTV potential of up to AUD$15 billions in Malaysia alone. BNPL expansion is currently on track for Indonesia and other SEA regional countries from June 2021 onwards.

IOU is currently onboarding 2,800 merchants from the MYP1 merchant network as we speak. In addition to this, IOU has another whooping 5,000 merchants from Easystore which are largely online ones and are also being onboarded too upon vetting merchant turnover and targeted quality of merchant industry and sales metrics.

Additionally, iPay88's merchant network will provide up to 65,000 of combined in-store and online merchants in Malaysia alone - IOU is clearly going through a very through and diligent merchant vetting process so that we only onboard the highest quality merchants to ensure a very low credit risk via good merchants in the best industry and high quality of customer spend and turnover through these Tier 1 merchants.

So in summary - just based on BNPL in Malaysia, IOU has the potential to work with a combined TTV of about AUD$15billion and a substantial merchant network of up to 75,000 with 2800 merchants already earmarked from MYP1 network to be onboarded and a further potential of 5000 merchants ex Easystore. I do not know who many of iPay88's 65,000 Malaysian merchants IOU is targeting - but it would applied the same proportion as MYP1 (2800/15000) which is about 20%, this is up to 13,000 merchants from iPay88's network. In total, IOU could have a 20,000 merchant network over the next 6 to 12 months just based in Malaysia's market alone. In comparison - Sezzle has a merchant network of 34,000 and Afterpay in the 70k mark from memory?

IOU is currently working on expansion plans into Indonesia and beyond. As we have previously spoken about exponential growth in IOU's bnpl business - this is now being put into action and from what I can see huge growth is currently being generated.