It has started - will it continue?, page-39

My estimate revenue for CY 2016. So far we have some reported figures which include $1070k receipts in the first quarter also quoted $640k in first 2 weeks of April.Plus a estimate $5 million per annum reported on 23/5/16.Generally as soon as they get an order they have been reporting it.So first quarter 1/1/16 to 31/3/16 is estimate $1.5million.Second quarter all I have seen is the $640k and this was reported in April so estimate $2.5 million.Third quarter and fourth quarter I will estimate $3-5 million each.This will give a CY 2016 of $11 million revenue.

So I do not believe they will meet their forecast of $18.5 million.

The break even for the company is sales of around $35.4 million how I get this is that the Moelis report stated they would make a profit after tax of $1.9 million on sales of $41.7 million.If you divide the net profit after tax by the 30%margin this is sales of $6.3 million then take off the $41.7 million it equeals break even of $35.4 million. So if they are not selling at least the run rate of $35,4 million it is impossible to be cash neutral at July the first.

I have put some thought into these figures.