Investor Center » Fireside Chat

15 July 2019

CEO’s Video Chat re: Shareholder Queries

In this 7-part video release, EN1 CEO & Chairman, Ted Dhanik answers questions emailed recently from shareholders. He covers these 37 questions in the videos below (at the bottom of this page):

Video 1
  • 1. Shares continued to be issued for legacy debt but to whom, to which businesses, what are their business names and how much more does EN1 still owe them? As shareholders we are very concerned because we don’t know who you keep issues shares to.
  • 2. Debt facility arrangement has been communicated to shareholders but more than 2 months, still not successful, Is it dead?
  • 3. StartApp integration has been delayed month after month after month and still nowhere to see?
Video 2
  • 4. IconicReach platform is not working?
  • 5. Explain the difference between your p&l and cashflows, why didn’t they tie together?
Video 3
  • 6. Who’s selling their shares?
  • 7. Are you a fake company?
  • 8. If the company does not need to rely on CN any more, why not announce it on ASX?
  • 9. When is the next cap raise?
  • 10. Why doesn’t the company have an Australian broker?
  • 11. Why keep giving the market that daily revenue has scaled up to X and Y amount per day but the actual numbers at the end of each month and each quarter always fell short?
  • 12. How did we manage to lose $300k in a few days of technical issues? Is this 5-6 days of consolidated revenues? What is stopping this happening again?
Video 4
  • 13. Have you considered whether you are allowed to report in USD for managements and 4C?
  • 14. In terms of the expenses not adding up, I understand, as an accountant, that not all GL categories would be included but perhaps for the sake of not so savvy investors it wouldn’t hurt to just add an “other” category to ensure the numbers add up.
  • 15. Regardless of the market’s expectation on whether these are “audit-grade”, I feel to make your life easier things need to at very least add up. It might be time to place a competent CFO or senior finance resource to ensure numbers being reported are water tight.
  • 16. Just wondering why the ‘Get a Quote’ button at the bottom of the page of the publishers and mobile & SDK tabs on the engageBDR website just sends you to the top of the page. Is this a glitch, Will it get fixed?
  • 17. Does the company generate revenue 24 hours a day 7 days a week or only during work hours?
  • 18. Can you elaborate on the company’s Ai? How does it compete with other company’s like the Trade Desk’s Koa?
  • 19. Compare similar companies that are doing what EN1 are doing but are advanced currently more than EN1 at the moment. Give a timeframe that you possibly expect to be at their level with revenue if possible.
Video 5
  • 20. EN1 (consolidated) daily revenue peak A$61k. What was the reason for not meeting the target? Was there an issue with anything or was it just how it turned out to be?
  • 21. Your website is not working, and it has a lot of grammar mistakes.
  • 22. What competitive advantages does EN1 have and how difficult is it for others to replicate what EN1 is doing and achieve the same results?
  • 23. Net-zero payments, how can we avoid the default on these future repayments?
  • 24. Debt financing for future activation, what % are we looking at for the debt finance? 30/70 (debt/equity ratio or…)?
  • 25. What’s your plan for the potential profits in the near future? Diversified into different sectors such as other tech companies, mining companies such as lithium or reinvest back to the operation?
  • 26. International expansion?
  • 27. Question on software and the market model. What are the barriers to entry, say can a new player enter the marker (with lot of funds), copy what you are doing but cheaper? Is this tech patented?
Video 6
  • 28. I read that total expense (including staff costs) will remain fixed despite moving up scale. I understand this is possible through automation, but is this true for EN1? People are throwing out figures like approx. $500 to 550K per month? Is this for total business?
  • 29. By when will you be in a position to give us EBITDA figures for FY20?
  • 30. I sensed that there is a massive wall when SP price reaches 4.5 cents or 4.6 cents. Understand these could be day traders just doing their thing, but there is that CN conversions, which is also a factor? What’s your view?
  • 31. With around 200 integrations it seems each one is worth a very small amount - please speak to the value of these integrations. Presumably, some are more valuable than others? Presumably, some of the integrations are of little value moving forward? A casino might have 1000's of visitors but they make their money off a handful of whales!
  • 32. What dictates the size of the potential for the business? Where does increasing revenue come from? From general increases in demand? From clients switching to EN1? How does the business grow?
  • 33. Can you produce a diagram showing exactly how and where EN1 fits in to the programmatic ecosystem? There seem to be so many pieces to this - demand platforms / supply platforms / exchanges / trading desks / all the integration partners you mention / ... / I think everyone is confused.
  • 34. CN facility expired 1 July. Per the latest 3B (14/6) it appears we have USD$235k of S3 notes remaining. Are you saying we have redeemed these S3 notes and don’t intend to issue any further notes (ie Series 4, 5, 6 etc)?
Video 7
  • 35. Can you guys just please clear up the discrepancy on the Q2 BDR and consolidated ‘meal and entertainment’ result? Seems like the US Entity managed to spend 15k but the consolidated figure for the same column is only 14k.
  • 36. I’m struggling to understand how this result relates to “cash flow positive announcement”.
  • 37. Well shareholders have spoken and clearly it doesn’t translate well and only giving part of the message and then showing the results forms a pump and dump type SP and no stability.

  • Ted will be visiting Sydney and Melbourne in late September. To schedule time to meet, please email [email protected] Additionally, shareholders visiting Los Angeles are welcome to visit EN1 offices and meet with the executive team. We look forward to seeing in 2019 and thank you for your time today!


 

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