Ann: Appendix 4D, page-8

I spoke to a company rep a few days back regarding this. Obviously he couldn't give anything away as to what their direction will be however what he was happy to say was that the new team are highly competent across the tech space and that they had been selected due to their vision for the company. They certainly don't seem to be targeting the mediocre performance standard delivered by the old guard.

It's pretty clear to me what's playing out here;

The stale and somewhat questionably motivated old board who were also directors or Contract light have left. The companies financial commitment to Contract Light has been severed with their investment having been written down to near zero ($107k) carrying value. This resulted in a one off non cash loss of $867k but has vastly cleaned up the operation. In addition to this operational expenses have been slashed by over 50% and consultants have been culled with the new team doing what they are paid to do.

With the clean up near complete there should be circa $1.15m of outgoings removed which based on current revenue would make the company CFP

In addition to these cuts management have clearly stated their intention to bolster revenue from existing assets as well as exploring acquisitions that are complimentary and leverage the strengths of the new appointments.

"Commenced investigation into DOOH opportunities. The XTD Directors are actively seeking opportunities to utlise its strong cash position and the current Directors' track record for building successful businesses to make strategic investments in suitable DOOH networks."

The way I see it XTD is now a small profitable and self sustaining company with the right team and enough cash to build or acquire growth

Capped at $3.2m with an EV of only around $1.2m this thing is trading at shell value, as the strategy of the new team comes into play my belief is that this has the potential to deliver multiples of the current value.