4C, page-124

Hi all,

Spoke to PC briefly earlier today. As expected, he was very tight lipped about the September quarter results but did mention that overall the business continues to make good progress. According to PC, current MOUs are still a priority and they continue to progress with these unnamed companies.
PC's comments re: LiLLY were also consistent with Tim Thornton's previous reply to a shareholder i.e. they are continuing to improve LiLLY and hope to launch by the end of the year.

I mentioned to PC that it has been over two months since an update was provided to the market and his reply was that they are intending to provide the market with an update ASAP. They were also working towards releasing the 4C earlier than required.

I also sought clarification re: the following paragraph (the subject of much contention among some IAM followers on HC) and as contained in the latest Annual Report.

'The Directors are of the opinion that whilst current funding levels are sufficient to address working capital requirements required, the Company will seek to conduct additional capital raising activities in the next twelve (12) months.'

He mentioned that as responsible directors, they are always obliged to plan for and consider worst case scenarios, and that the above opinion would only be enacted in the event that;
a) current cash burn rates do not improve this financial year and
b) current 'in the money' Dec-17 options are no longer in the money and /or exercised.
[note: it is my opinion that a CR could also be possible in the event of a significant value accretive acquisition, however he & I did not discuss that scenario.]  

PC also mentioned that they are well aware of the options expiring in December, and how important they are to the company in terms of providing (realising) significant additional near term capital, security and flexibility - if exercised.

Overall, my takeaway from our conversation was that PC, MF and the management team continue to work tirelessly and diligently to create and add value for shareholders, and that despite the recent challenges and setbacks they remain on course to deliver a superior and more efficient service to financial planning practice owners en masse, allowing a challenged industry to reap the rewards via profession-changing cost reductions and profit growth.   

GLTA and please note that the above is only my recollection today's conversation, and therefore it and any opinion that I have may not be accurate and therefore should not be considered as advice of any kind.  Please DYOR.

Cheers
Elpha