Ann: Quarterly Activities/Appendix 4C Cash Flow Report, page-69

Reasons I'm still reasonably optimistic with ZNO are:

1. Growing number of multi-national customers have come on board. The latest in the list (as per the 4C) are Atalian France, Keolis France and Cleanysafe

2. Testings of the Zoono products continue in various industries. In animal health, trials results so far are positive and cost effective to the customers. According to the 4C, the poultry business is beginning to take off:
"In the poultry sector, in response to earlier trials, producers in NZ, Australia, Central America, UK, Portugal and Hungary are starting to transition from formaldehyde-based products to ZOONO products. This is expected to increase sales over the next twelve months"

3. New industries coming on board to trial the Zoono products. The 4C mentioned two
(a) Prevent moulding during shipping to ensure freshness of produce. The positive trial results is building a strong business case for the customers to adopt Zoono product.Zoono stated "commercial arrangements have been completed", presumably with the customer trialing it.
(b) Building sanitization (using existing air-conditioning infrastructure). The 4C stated
"Commercial interest in the system has been received from a large portfolio owner who owns about 150 buildings. Estimated volumes for a 5-6 story building are 300 to 500 litres per building per month. First orders have been received."

4. The major market US is still very under developed. Hopefully after regulatory approvals have been sorted out, the sales will follow.

On the down side, FY21 revenue is very disappointing and worrying. Should this trend continue over the next 6 months, I'll reassess my investment criteria. In the mean time, I'm happy to give the management time to build the business.