One thing that is bothering me with this CR raise is the...

One thing that is bothering me with this CR raise is the proposed use of $1.5m towards purchasing of inventory. At the end of FY24, the company had $1.5m in inventory and sold approx $1m of inventory from FY23 to FY24. Why do they need to increase total inventory to $3m on a watch (Adventurer 2) that's already a bit dated?

They've indicated use of funds towards developing Adventurer 3, but then mixed words with Adventurer 2 in the prospectus and Adventurer 3 in the institutional placement.

Now these watches are region specific with the MediaTek chips used. Our Australian adventurer 2 cannot be used in North America as the network bands are incompatible. Hence why Adventurer 1 watches were produced with two different versions.

I'm thinking the use of funds could be to get back into the North American market prior to the holiday sales? If so, they need to get their FCC application in ASAP (applied on Sept 23, 2021 for the adventurer 1 watch). If the use of these funds is to purchase more inventory without any hardware changes, then this would be extremely disappointing and a significant waste of funds while our competitors are advancing and progressing new generation watches.

Is the mix-up in words on product development a tell tale sign that they will be purchasing North American compatible Adventurer 2 watches and configuring that generation of hardware for that market? You could hide behind the argument that a North American A2 watch is a "new" A3 watch. Or am I reading into this too much in which case why do they need $3m of inventory when they only turn over $1m / year? New generation technology always sells strongly initially and then tapers off..

One last thing that really bugs me is SC's absurd compensation! 25% increase in a year when you still need to go back to the market for a CR? This is truly ridiculous and offensive