Ann: Appendix 4E & 30 June 2018 Financial Report, page-24

I hate to say it had hoped to find something to like. Really disappointed.

Margin 20% yet they have cut the unprofitable sales.
R&D down $700K
Interest expense up $2.2 million but then a whole lot of derivatives etc.
So the loss is $3.2million but that is after a gain on embedded derivative of $2,3 million, gain on repayment of debt $400k and exchange difference of $700k. add that back and you get $6.3 million loss.

So looking to next year you don't get a handle on all the moving parts of the debt so the adjusted loss is around $4,2 million and to break even at a 20% margin you have to hit a turnover of $20 million. I used to think that was easy for this company but have been very disappointed in the past.

That's around a 70% increase on this past year. It can be done but its a hard ask.

Is the cash in bank enough - if the debt remains in place which it should for the forthcoming year so that is good.

What this stock has taught me is that I am not good at the blue sky stuff I need to stick to evaluating businesses that have a more stable backdrop. This is an area I am going to stay away from. Good luck to all of you who still believe. Seeing as my two bad stocks in the past 3 years all start with the letter A I think that may well be another thing for me to avoid.

Hope it works out I think its a great challenge. I must admit that it looks like I would have done better to take the advice of Jasmin in this one.