Ann: Appendix 4C - December Quarter 2013 , page-2

A creditable quarterly from WRR and good to hear that sales are at higher margins with profit ahead of budget to date, despite the delays and costs of the Iridium project. Revenue for the half year of $5.5m and with $0.8m in op cashflow is a good start.

Provided the Iridium project can actually meet the latest target of launch and $2.25m in revenue for June quarter, then they appear well placed for the year and probably deserve a re-rate from current market cap (approx $1.5m after dilution for the upcoming investment from Ample Skill Ltd).

However, note that there are also a series of convertible notes on issue maturing in 2015 and 2016 with conversion prices of 20 and 25cps which (along with various options at mostly higher prices) could double market cap if converted. Not yet dilutionary at 9.5cps though.

Interesting micro-cap in terms of potential upside, but still high risk, illiquid and indebted.