Ann: Adjournment of AGM, page-6

The audited financials show assets at $25 million, it’s the fluffed up investor update that shows $34 mil in assets which was based on the preliminary financials. And unfortunately a very large portion of that figure is in goodwill. Given recent industry developments, one could argue these assets are not worth what we paid for them - selling assets under these circumstances further increases the likelihood of a reduced asset sale price (also, the preliminary FY17 report also showed positive operating cash flow of $1.3m when in actual fact after they were audited we were -$500,000 for the year in operating cash flow). We could easily further reduce assets by many millions if forced to sell. So net asset position is not great at the moment.

Based on these material misstatements, I find it very hard to believe we are generating $5mil ebitda this FY, even once acquisitions are taken into account. I mean regarding the secured debt, either we couldn’t manage the interest repayments (unlikely), or we breached debt covenants (likely) so not all is as it seems. The fact that the unrelated Ezetax also went into administration is just scary.

For what it’s worth, I hope you’re right as I hold a significant position in this business. Spoke to administrators yesterday and they didn’t give me much given they’d only been appointed for two days.