Ann: Quarterly Activities/Appendix 4C Cash Flow Report, page-75

I've seen it several times before where companies I've been invested in are seriously damaged when the technical wizard behind the technology doesn't recognise that they are not the best person to carry the business forward as a commercial concern. There comes a time when the primary work of the business pivots from research and development into sales and production, but the CEO isn't aware of the gaps in their experience and abilities. The board is clearly not prepared to raise it with Dr Vornig.

The red flags are quite evident here as well:

1. Consistently setting inflated expectations and then failing to deliver them, resulting in unpredictable business and share price performance.
2. A history of opportunistic and dilutive share issues clearly driven by advisers with vested interests rather than a coherent capital management plan. The result is in the 4C for all to see... the company is swimming in massive amounts of unutilised cash taken from investors for no purpose.
3. A seriously over-compensated CEO with little or no accountability for business performance.

Twelve months ago the company should have undertaken a strategic plan to find a new CEO with the necessary capacity to take over from Dr Vornig, who could have quite honourably continued as CTO to head ongoing research, development, and sales support where necessary. If Dr Vornig had the best interests of the company in mind, he would have initiated or at least supported the plan. Instead it's quite clear that Dr Vornig places his own financial interests first, ahead of the company's interests, with shareholder interests so far down the list they can't be found.

I was amused to hear Dr Vornig saying he was "frustrated" that the company's share price was lagging so far behind the company's revenue growth until recently. It seems that he's so far from competent as a CEO that he's not capable of recognising his own part in creating the situation.