Ann: Appendix 4C - quarterly, page-56

I agree, up until now Novatti has been a bit of an acquired taste.

I too have spent hours this weekend again going over all the announcements since IPO.

My conclusion - as I revisit and rebuild on my understanding is it just gets better reading.

I believe we're on the cusp of seeing the benefits of scale across a number of significant income streams.

I love this from the other day ... "Most notable is the spread and growth of revenues across multiple revenue streams from a range of services that have been incubated during previous periods. At the same time, operating costs have continued to be reduced such that the company can more quickly come to a point of on-going operating profit".

Importantly, that scale can also incorporate any success that re-sellers, affiliate partners or saas clients have with their businesses on the Novatti platform(s).

Royal Pay is a great example. They did $50m turnover up to June 2017 and expect to do $150m this FY. In Australia they operate under the AFSL held by Flexiwallet (a subsidiary of Novatti).

The China Payments division hasn't even being going for a year and they have exposure to some of the biggest companies in China (and the world).

The epay deal potentially brought 23,000 merchants into the network - with companies like BP selling flexepin.

They signed two remittance companies with 1,000 pre qualified clients each. They were negotiating with three other remittance companies to come onboard.

Since June, Basis2 - the water billing utility service is now adding $90k per month (net $40k pm) to transaction revenue. With a $600k advance payment to be made in April/May.

Yes the business model is a bit complex and they don't give much detail away at this stage. They tend to blur the lines a bit between recurring and transaction revenue, which I'm ok with for now.

However, the deal with Tienpay gives a good example of how they can spread revenue across various divisions. As they stated in the announcement of 8/8/17 ... "Novatti receives payment from TiENPAY by way of software project fees, SAAS fees, per transaction usage fees and compliance fees. These fees are dependent on the take up of the service".

I think a similar revenue scenario would apply to Royal Pay and any other authorised re-sellers operating under Flexiwallet.

I don't think the market is asleep with NOV. I think it might be trying to smoke us out of holding until further news comes along that confirms the growth we're currently witnessing.

Whilst there might be some weakness along the way, it's a comfortable hold for me for now and I hope it is for others.