Ann: Renounceable Entitlement Issue Prospectus, page-2

From the Prospectus

5.5 Details of substantial holders

Notes:
1. Details of Mr Ostergaard’s holding is set out in Section 8.6. Mr Ostergaard does not intend to take up his Entitlement, which will reduce his voting power to a maximum of 12.9% on an undiluted basis.

5.1 Purpose of the Offer
The purpose of the Offer is to raise up to approximately $1,206,755.
The funds raised from the Offer are planned to be used in accordance with the table set out below:

	Column 1	Column 2	Column 3
0	{colgroup}
1	{col}{/col}{col}{/col}{col}{/col}
2	{/colgroup}
3	Items of Expenditure	$	%
4	Pre Offer cash available1	1,078,000.	47.18
5	Funds Raised from the Offer	1,206,755	52.82
6	Total	2,284,755	100
7	Sales and marketing2	837,284	36.65
8	Product development3	598,890	26.21
9	Costs of the Offer	104,434	4.57
10	General working capital4	744,147	32.57
11	Total	2,284,755	100

Notes:

1. As at 30 June 2018.
2. Includes direct sales consultants’ costs of $543,256, other marketing costs of $48,123 and sales consulting, advertising, and public relations costs of $245,904.
3. Includes salaries for personnel involved in research and development of $399,599 and infrastructure costs of $199,291.
4. Intended to be allocated as follows: director fees of $96,889, accounting (including R&D advisory) and company secretarial costs of $134,420, legal costs of $75,630, investor relations cots of $54,718, insurance costs of $34,479, rent and office costs of $104,548, payroll tax costs of $70,029 and general working capital costs of $173,434.

The above table is a statement of the Board’s current intentions as at the date of this Prospectus. However, Shareholders should note that, as with any budget, the allocation of funds set out in the above table may change depending on a number of factors, including the outcome of operational and development activities, regulatory developments, market and general economic conditions and environmental factors. In light of this, the Board reserves the right to alter the way the funds are applied.