It's just the beginning for Spenda!, page-37

Thanks for sharing that video. Wow, it seems that AF has had an epiphany and clearly the share price is the catalyst. Remember that Spenda has been encouraging the staff to take shares as remuneration. It seems that the penny has dropped and AF has realised that he needs to, in his words, steady the ship, to keep up the morale of the many stakeholders who have skin in the game including the principals of Invigo and Greenshoots (Lithium Digital) who all hold a substantial number of shares. It's not good for PR and the company image if the share price is on a long decline.

I sense that AF has been mentored going into this interview. The fact that they prepared and answered hard questions addressing investor concerns suggests this. AF spoke far more thoughtfully and with more clarity and focus on shareholders' interests than in the past. In contrast in past presentations we have had this geeky Tom Bombadil chattering away in riddles calling us to follow him as he skips into the enchanted forest.

@Raphius I think we can all read between the lines regarding ARPU. I suspect that at this stage in the Spenda roll-out ARPU is not going to be impressive or a highly meaningful metric to evaluate the business on. Per customer acquisition costs at this stage are going to be high. We are on-boarding new business hubs such as Whola. It takes time for the revenue flow to mature from new customers. We are still to roll-out highly automated RegTech systems for on-boarding. Many customers are likely only trialing the software and service, and may only be processing a portion of business through the system. Network effects won;t have gained much momentum at this stage either. Early days.

@ViggoLothbrok I've only listened to the interview once after having had two glasses of wine, but... it seemed to me that Adrian was specifically addressing those customers which have been on-boarded at the end of the year for which no revenue had been booked in the December quarter. I understand that he didn't specifically mention Whola in that context because, I assume we did book some cash receipts from them in the quarter. Possibly not a lot of cash receipts and I would assume that a portion of the $8.1m the company reports was on loan at the end of December will be money lent to Whola network buyers. The quarterly activities report states:

"The Company continues to expand its lending portfolio, with a gross client loan book of $8.1m as at 31 December 2021, which included loans funds deployed across various industry sectors including food and beverage,fashion and agriculture, generating an average yield of 18.7% during the quarter."

We are not out of the woods in terms of the share price trend either. Overall market sentiment remains uncertain and that makes it hard to price a pre-profit early stage project such as Spenda. A lot of the market cap at this stage is going to depend on market sentiment and to what degree investors are willing to take on risk or take flight to safety.

My personal sentiment is this is either a hold or buy for those wanting to take on the risk of a promising business. There have been red flags. It's not going to be plain sailing, but there is a lot of potential.

My final though, is that although I've had a lot of reservations about Cirralto/Spenda in the relatively short time I have been a shareholder, one factor in my decision to hold has been that the alignment between the Chairman, Peter Richards, who also Chair's the $1.8B market capped Graincorp and the company's targeting of export facing agribusiness. That indicates to me there is a good prospect of realising the potential on offer through the industry insights, connections and standing of our chairman. I have, however, on a couple of times voiced my concern at whether the Chairman was sufficiently overseeing the governance of Cirralto. No doubt the recent share price action has also come to the notice of the Chairman and the entire board and they have given thought to how they can help Adrian and the senior management focus addressing stakeholder and market nervousness.

Today's interview was a positive step in addressing the recent market sentiment towards Spenda that hopefully reveals a deeper pivot toward addressing the market's confidence in Spenda's future.