PPKME, page-107

Hi Magic, thanks for the feedback, I will try to ensure it’s a little more open going forward.

Let’s just say the whole PhD has been a huge process. Understanding how multiple companies do clever accounting and how auditors don’t seem to actually do anything can get a little frustrating. The focus of the study is about who actually benefits and what losses are attributed.

It does get hard to keep neutral, and fact based. I personally hate creative accounting to make FY reports to look better, missed promises from one FY to the next , etc. I am lucky that due to the way I have conducted the research I have compiled a lot to constantly review and compare against.

For the research I have identified out of the PPKME FY23 report. I have tried to keep this clear cut facts that I consider of value. I have removed some that could be taken out of context for this purpose.

Increase of 65% revenue increase (Pg. 1) with 94% increase of parts.

EBIDTA - $6.548M (Pg. 1)

NPBT - $2.624M

Note this include $1.207M gain on acquisition. (Comment reserved)

*** Note the total comprehensive loss for the company is $0.256M Pg. 36 ***

6 driftrunners sold for $3M.

(FY report only includes the value of 2)

Additional 4 driftrunners sold.

Pending 2 Coaltram sales pending customer finanical approval

Quoting an additional 18 Driftrunners.

& 1 Driftrunner & 1 Coaltram

New relationship with China (covered on LinkedIn)

Company updates

• Belford filter.

Refer to PPK.asx FY20 Report & FY21 Report. Projected to launch in 2020, delayed to 2021 but expected to be by calendar year 2021.

ACARP funding - 888k

First started on 2015 and projected to be commercialised in 2018 by another company (Orbital).

ACARP funded project (refer to C33009 started in 2020, C25073 - $519,240 & C26070 -2018 - $1,246,712) TOTAL FUNDING TO DATE - $2,653,000

BEV vehicle

Entering negotiations with a battery supplier.

**** Refer to PPK.asx FY20 Report & FY21 Report. Projected to launch in 2020, delayed. FY21 report announces relationship with Ampcontrol. Market research indicates this relationship does not look to have continued. ****

Coaltram

Further upgrades with change to ECU.

Corporate Matters

Moving away from the PPK group corporate services and brought them in house.

**** Further understanding as to expected revenue drop to PPK.asx ****

Share buyback

3,920 holders with parcels under $500 (max 4,160 - 5,000 shares per holder) to be proposed to be bought out at GM. Not a confirmed value listed in the FY report of expected cost.

*** note the consideration of this with current financial position ***

Worth noting that the board have intent of paying dividends in the future.

ESG commentary on page 9.

***Coal based company***

Director (Simon Napoli) share holding increase 87% (Pg. 10)

Directors now holding 17.3%

Page 14.

8k of cash @ June 30th

trade receivables vs trade payables ? -

Equity calculation (Possible difference from report)

$18.381M listed however shares acquired by PPK (MAR 2023) for employees make this $10,714M.

(Further explained on Pg. 41)

Pg. 15

Cash receipts $64.883M.

(Possible forward payments. As the sales figures don’t line up)

Pg 32.

Going concern, directors believe it is the case.

• PPKME have met all obligations.
• Will utilise $6M if working capital in short term.

Pg 33.

VLI acquisition generates $0.84M profit.

Pg. 34

Overdraft.

• $1.323M

Pg. 37

Revenue for rendering services not completed yet - $2.869M

Inventories have increased in valuation.

$1.003M

Pg. 38

Asset sale of $3.5M, need to confirm this is reflected in asset decrease.

Pg. 42

Capital & Gearing.

Report is based on $0.211 per share. Need to identify where this has come from.

Using the figure of $0.12 per share (PPK employee shares MAR 2023) gives a market cap of $10,714M.

Gearing ratio becomes 105%

Pg. 43

Instrument breakup

$11,313M total financial asset

Vs

$26,518M total financial liabilities

Negative $15,205 million

Figures I need to look at
Calculation of burn rate
Calculation of Profitability to debt reduction.
Calculation of serviceability.