Ann: Quarterly Cash Flow and Summary of Activities, page-30

Have had a subsequent read of the quarterly again and I'm happy with it overall. The main issue for me and obviously others is some of the revenue/cash lag, which appears primarily associated with the new large contract. This should resolved once that contract has progressed further into its lifecycle.

Cashflow continues to be managed tightly but they have shown to date that they are capable of doing so. I'm also happy to see some of the level of detail/explanation being provided both in commentary and specifically the 4C itself - above and beyond what is often provided and goes toward reassuring me that shareholder money is respected and being spent carefully.

This aside, the build up in revenue QoQ and YoY is very impressive. Revenue just booked in Q3 of $2.8mil was greater than revenue booked for the whole of H1(Q1&Q2 combined) of $2.7mil. That is impressive revenue growth.

We are now entering Q4 which is traditionally their seasonally highest for revenue due a greater level of one off sales. Though I caveat that with the fact that last year showed that some one off revenues booked in Q4 didn't flow through to cash receipts until Q1/Q2 of this FY. I believe they have/are working at improving lag between invoice/payment in these one offs so lets see if this year is better.

I think based on history, booked revenue for Q4 could be in the vicinity of $3.5mil+. This would be another record quarter in booked revenue.

If the cashflow situation improves as they claim it will then the revs growth so far this FY is very impressive and based on their performance over time I don't see that growth slowing.