Ann: Appendix 4C & Activities Report, page-4

The numbers and words clearly do not match. Also noting COVID-19 restrictions did not commence until mid-March (last 2 weeks of the quarter), so valid to mention it, but its impact should have been pretty limited in the period.

The "tell" here is item 8.5 of the Appendix 4C filing. They have 0.03 quarters of funding available - that's about 3 days. Given the numbers are as-at 31 March, and the report is 30 days later, there is an absolute loss of credibility. They should have filed for administration weeks ago. As I said in an earlier post, the CEO has clearly convinced himself and fellow Directors they can access capital (debt or equity). Frankly, why would you?

If you really could be bothered to look at the numbers (comparing to the same quarter last year), the two biggest issues are; Revenue down by two-thirds, yet COGS is 60% higher. That makes no sense what-so-ever!

Item - Receipts 1.1
Last Q: $1,392k This Q: $509k (This is only one-third of the revenue for the same time last year)

1.2(b) - Product manufacturing & Operating Costs
Last Q: $284k This Q: $470k (This is 60% higher than the same time last year)

1.2(e) - Staff Costs
Last Q: $473k This Q: $330k (This is a reduction of 40% on the same time last year)

1.2(f) - Administration & Corporate Costs
Last Q: $654k This Q: $602k (This is a reduction of 8% on the same time last year)

The lifeboats are no longer full, they're sunk - the only life jacket available is to sell, if you can, or take the capital loss when it's liquidated.