Ann: Appendix 4C - quarterly, page-32

Mr Mark Schuessler appointed as Managing Director and Mr Glen Watts as a non-executive director (5/1/18). Worth checking the improvement in metrics since this date.

To further explain the 375k mentioned, early this year there was a stock adjustment claim from a major US retail customer to the tune of $1.95m, looking at the accounts it appears as though this is currently being paid back and is reflected as a reduction in the revenue column (or an increase in the product manufacturing and operating costs?). This obviously has an effect on the overall cash flow which should mean a significant improvement at conclusion.

To date they have paid back around half of this adjustment and by June 19 it should be clear

	Column 1	Column 2
0	{colgroup}
1	{col=254x@}{/col}{col=100x@}{/col}
2	{/colgroup}
3	Mar 18	250,000
4	Jun 18	375,000
5	Sep 18	375,000
6	Dec 18	375,000
7	Mar 19	375,000
8	June 19	200,000
9		1,950,000

With this in mind it's apparent that the metrics will further improve based on current trajectory (receipts improving around 300k/q until June and then a staged $375k boost as the stock adjustment is completed). Should they maintain current trajectory then the future is as below.



Something else of interest is the position Keybridge/Bentley have taken with just under 20% of the register and an appointment to the board in April in the form of Mr William Johnson. This gives them some influence on how the business is operated and from what Iv'e seen in the past this may also set the scene for an acquisition in the future.