Ann: Half Yearly Report and Accounts, page-13

To be honest, I would say you ignore some positive views.
1. Revenue increased 2.5M. Please note there is only one sales contract announced in fisrt half FY (with KCN), I don't think this contract is worth 2.5M, which means the revenue from exsiting client was increasing a lot. For future development, this is much better than one time contract.
2. The terrible ann didn't tell us any detail in why expense increased a lot. Therefore we only can guess. As last year annually report demonstrated, the business strategy would change to focus on international market, and according to the ann from this FY, the company exactly signed some reseller and partner agreement. I would thinking the increased expense is paid for that, and I think this is fairly early investment in the market.
3. Since 2nd half FY, actually only in Feb, PEH already got three income contract, if, I said if the expense can be controlled well, in the annually report, the profit should be turned to positive again. Even PEH still expense a lot on the market, and need to CR, I don't think it is a bad thing. As a long term investment, I would stay here.

Don't forget if the SP decrease to 10 cent, PEH's MC will be only 15M, think about annual revnue, absolutely undervalue IMO.