thanks anthill! My comments:

1. Why is the debt facility announced on Mar 2018 not being drawn down (per July 4C)?

New distributed networks need capex for the installation. So if they are writing new business where they hook up a strata to LPE, they need capex. My understanding is that only hard assets (eg meters) can be funded via the facility, not other costs (eg labour). So still a mystery. I have put a call into the company to ask.

2. Is the increased cash gross margin ($2,181k in June Qtr) sustainable?

Thanks for your corrections and explantation.

3. What is the company's liquidity and specifically will it need to raise capital.

Thanks for your reply. More specifically, my question relates to whether they need capital to achieve their stated goals on their current run rate. I understand that if they have a step change in their rate of installs then that will put pressure on their balance sheet. Hence my first question about debt finance.

1. Why is the debt facility announced on Mar 2018 not being drawn down (per July 4C)?

2. Is the increased cash gross margin ($2,181k in June Qtr) sustainable?

3. What is the company's liquidity and specifically will it need to raise capital.

An overview of the business is provided in the investor presentation of 12 June 2018.

Some of the positive attributes

• high gross margins of 19%+
• contracts are relatively long term and customers are likely to be quite sticky following expiry of the fixed term (i.e. will continue with LPE without shopping around)

Recent quarterly saw growth in installed capacity (which directly drives margin) of 26.7mWh, which is very high and at this rate will reach their target of 450mWh in Oct 2020.

Business should be very scalable as marketing costs are quite low and there is just a need for central functions (billing, customer service, accounting etc which should scale well).

Company hasa a very large addressable market. No moat as such.

Debt facility funds the inital capex. There is some working capital required for new installs that can't be funded from the debt facility so perhaps some market queries whether the growth is possible.

If the company makes $8.2m in FY21, I can see it being on 20x earnings or a market cap of $164 (~4x current).

Quarterly financials below (apologies about the formatting, figures are in $'000)

Some comments:

• the gross margin ($) had a substantial increase in the Jun18 Qtr, vs previous quarters
• the company had c.$(476k) of investing cashflows in the Jun18 Qtr. These relate to the cost of installing embedded networks (the infrastructure).