Ann: Appendix 4C - quarterly, page-266

The solution to get the company out of the current situation is not simple, and that statement is misleading.

The problem is, we just had a capital raising that raised a total of $8m. $6m as a placement, and $2m to existing holders. $500k of that was to Ratty who was selling to the tune of, say, 10:1 compared to what he was buying.

This was literally a month and a half ago.

Of that $8m, I understand we have already spent $4m as we had income of $8m for the quarter, but we spent $12m.

As I understand it, we do not have enough money to survive 2 quarters with our current burn, and the current growth.

Spending and earning currently appear to be running in parallel, and not towards inflection within any reasonable timeframe (ie before the company runs out of working capital).

Launching new products is a great initiative, and I fully support it, but it also take time to gain traction, there is a sales cycle, there needs to be training, there needs to be marketing, regulatory approvals, new staff to perform this work etc etc etc.

If we could launch 5 products today, I doubt the launch of those products would be cashflow positive for at least another 12 months when factoring the associated launch costs.

The issue is it IS a high risk venture, the SP has tanked 42% in 2 days from 23.5c to 13.5c today. We have a market cap of just $47m.

There is also the question mark of current debt facility, terms and covenants.

I am truthfully starting to annoy myself, but I don't want people to think that it is all roses, when there are a lot more thorns that need to be sorted out first.