relax regarding ce and website, page-10

Paradigmshift

The 4C announcement ending the march quarter indicated at their current burn rate TIS has sufficient funds to last until the start of 2013. SM stated there would be limited sales (~a couple hundred thousand) this year.

TIS has spent an additional 3 million on stock over the last 9 months for sales that are to commence over the coming months and ramp up next year. If this stock will be sold over the 2013 year, and it is necessary to start producing stock 9-12 months in advance, then inventory costs may increase over the coming quarters. The potential for a funding gap is obvious - a risk that should not be glossed over.

Now consider US trials - will these trials be deferred until cash flow is sufficient to fund them, will a third party fund the trials for a royalty on sales, or will capital be raised to fund them?

Blanket ramping statements that dismiss all risks are ignorant.

TIS have a great product that will likely sell well and be very profitable; the question I ask myself is will there be a fantastic buying opportunity over the next 9 months. If none of my concerns eventuate then I will pay more for a stock that has been further derisked. If my concerns eventuate I will pay less for a stock that has been further derisked - win win IMO.