Ann: Positive Operating Cash Flows Achieved for September Quarter, page-13

Sorry having some issues replying....

Businesses can only survive based on the cash they have and the cash they generate. G1A have 19M as at June and (by my guess) will only generate ~1M for the Sept quarter (even if they continue to push out creditors - they have likely paid the June ones pushed to July and pushed Sept to Oct). They need to generate 10M surplus in the next 3 qtrs to cover the debt repayments. They are already at steady state and seemingly are likely to only generate 1M for the quarter. Thus it is either cash in via raise or reduced cash out via debt restructure. If they do restructure Taurus will take that opportunity to bend them over and that (albeit while allowing their survival) will make the future operations less profitable.

This quarterly will be interesting. It is a shame we don't get to see a balance sheet as it would be enlightening. The big issue for them is even though they pushed out a bunch of creditors in the June qtr to the Sept qtr (and they will likely do that again) it was still 40M in outgoings for 2 months of operations. Unless they can push out an additional month of creditors on top of the ones previously pushed out I think the net cash generation will be meagre.

I think they will either raise or restructure (or both) in the Dec quarter as once they make that first repayment (assumed ~10M) the cash position will be precarious.