FROM WIZOFFICE COM LTD' S PP,OSPECTeS Liquidity and capital resources The foitowIng labia summarises our statements

of cash flows for the periods presented! Quarterly Financial and Operating Information Three Months Ended 1999 2000
eten-liier 30

sS

.12.totalat.L.U.

ss

Mareh,31. ss
(1,594,96fl

5.S
(5,814.233)

isle! loss

(398,049)

(631.524 ..

Net (increase) decrease In

. working capital Other adjustments, for non-cash ems Net cash provIded by (used in) operating activities Net cosh used In investing
acti9IlioS

(58.745) 23,450
(433,335) (475,346) 1,417,568

(9.370.627p 206,084 (0,998.097) (128.492) 13.853.227

3,728,678

8,469.304 61.217 4.945,534 (1.840.755) 2,193,053

5,497.832

226.338 153,930
(5.4:%3,970)

(1,795,511) 3,895,512 ="

(3,333,069)
=GEGNEIM

Net cash provided by financing activities Net Increase (decrease) In cash and cash equivalents Cashflow from operating activities

508,887

As Indicated by the table above, we had negative operating cash flow for the quarters ended September 30, 1999 and December 31. 1 99.9, primarily due to net tosses and increases in accounts receivables, other debtors and inventory. Deferred expenditure, which totaled SS1.107.12C for eye year ended December 31, 1999. also Impacted our operating cash flow for the year. Our deferred expenditure consist primarily of capitalised customer acquisition costs, which are being amortised on e straight tine basis over three years which is the estimated useful life of the customer relationships acquired through these expenditures. Our deferred expenditure and related amortisation expenses are likely to Increase further as we expand into new markets over the next several years. Our operating cash flow would have been negative S53,200,434 in the quarter ended March 31, 2000, excluding S$8,145,968 in net cash which was deposited into our overseas bank account in preparation for the Incorporation of cur Japanese subsidiary WizOffice Japan. For the quarter ended June 30, 2000, we had a negative operating cash flow of S55.03,970 primarily due to losses from high operating expenses Incurred In our expansion overseas. We have experienced some difficulty in collecting accounts receivable from our customers on lime. Our customers are generally granted a credit period of 30 to 60 days to make payments to us, The amount of our outstanding trade accounts receivable at December 31, 1999 was equal to 87 days of sales based on our revenue for the fourth quarter of 1999, Excluding revenues and accounts receivable relating to e-business consulting end advertising, the amount of our outstanding trade accounts receivable at December 31, 1991 was equal to 72 days of sales. The amount of our outstanding trade accounts receivable at March 31. 2000 was equal to 85 days of sates based on our revenue for the first quarter of 2000. Our relatively large number of accounts. many of which are smelt businesses, makes In depth credit analysis of our customers diff.cult and uneconomical. Accordingly, collection of accounts receivable may vary materially from the level of sales reported in any financial period. We were able lo reduce this to 80 days of sales for the second quarter of 2000 due to improvements in our accounting systems and processes.
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