A lot to like in the Quarterly. We can really see things are...

A lot to like in the Quarterly.

We can really see things are beginning to snowball.
1. As of Oct 2019 - we are setting at 20,616 beds which is ARR of $720 and ARR of$1M post gov trial period.
2. We are lower pricing for the Gov. trail to achieve critical mass in customer numbers - smart IMO.

• This will rapidly help us get to our goal of 80% of residential aged care beds in Australia.
• Utilizing the government funding to bring on more customers (multi year terms!) and prove out the clinical benefits of our product is worth a lot more than the few $100K we are "missing out on"
• We now have access to 80% of the Australian RAC market with the new integration partner added bringing the total to 6 (makes me wonder if any of those systems are cross-industry too)

3. Point 2 above is evidenced by the 20 RAC and 22k beds waiting to start as soon as the gov papers are signed this Q.

• As stated by the Q, this basically 20% of the 220K bed Australian market
• Extrapolating that out using the numbers we have been given: 20.6k+ 22k = 42.6k beds will be signed this Q at least!
• Using the a minimum of $5/bed post gov trial - we are looking at MRR of $213K and ARR of $2.6M for the 42.6K beds
• I estimate that we will easily sign the 100k beds through the government trail. Adding that to the 10K beds signed prior, we can roughly calculate the expected ARR at the start of 2021 to be (110K x $5/bed) MRR of $550K and ARR $6.6M (just from Australia RACs)

4. Progress in the UK has been great and we are ready to starting signing some contracts

• UK business has been set up and registered - Painchek UK
• UK Business development manager hired (Peter who brings some strong contacts)
• Data center set in EU - according to the Q, this was critical prior to signing any deals
• Trials will be transitioning to deals this Q - so expect an announcement by Jan about this)

5. GP/Hospitals/Pharmacists and Philips - (Partnerships and additional distribution channels)

• A lot really to unpack here. Blue sky area in my opinion. I don't want to provide my thoughts at this stage as it is still early and I don't want to ramp. All I will say is that I don't believe point 5 has been factored into current market cap at this stage, and I am hoping to won't be until things progress a little more.

6. Nothing new for the Painfaces at this stage (Children app) - looking to be concluded in Q2/3 of 2020 and I am assuming CY

• IMO no rush for this. Let the team focus on building the brand and credibility with adult app first - a lot on the plate already

7. NZ - nothing new too. Q says expect something by end of year - so another potential announcement by end of year

Things for us LT holders to think about:
1. How many of the 210K RAC beds can we expect to touch by this time next year?
2. How many of 40K beds with PCS can we sign by this time next year?
3. What new agreements wait for us in NZ, UK and Singapore? and what else outside of those areas?
4. How will the FDA approval impact us and what can we expect by this time next year?
5. Will Painfaces be commercially ready next year and what's our strategy?
6. How much progress will we have with Home Carer App and service?
7. What will our relationship with Philips be?
8. Are you happy with the progress PCK is making towards being recognized as the Gold Standard in pain assessment?

Things for ST holders to think about:
1. Do you justify the $300mcap given the revenue this Q?
2. Are you expecting any major announcements over the next month or 2?

I will be buying another parcel in the next month of 2.

Cheers,
UA