Ann: Response to ASX Query Letter, page-13

My friend works at a fintech lender and she gave me the heads up that Moula's arrears are actually pretty decent. They were planning on marketing their series E raising but held off due to market conditions.

Also Prospa, as of 18/05 began lending to all customers again i.e. they weren't lending to business less than 2 years of old and certain industries. No idea on their bad debts but the comment I got was that the founders of Prospa didn't slave away for 10 years to watch their company go to nothing. Just need to be patient and see this through.

If you run a 10yr DCF on Prospa and you assume it goes to nearly insolvent i.e. 75% impairments, minimal 2H20 origination growth, rising costs, etc. You get close to book at 0.95. Assuming a lame terminal multiple of 7.2x and discount rate of 13.98% (TM = 1/DR).

In my opinion, they may as well disclose the numbers weekly even if they are bad as they can't be as bad as what they market has assumed.