Ann: Quarterly Activities & Cashflow Report, page-34

Great input mate! Always good to see your reasoned and sensible comments. I have a marketing and logistics background so I get excited about selling and seeing who else will buy what we’ve got on offer.

I’ve raised the B2C model with them and not had much of a response so I’m not sure just how committed the company is with the consumer channel, possibly just need the cash right now so it’s still there?

with regards to increased cash burn and the likelihood that that is due to the Mayo/Joondalup trials it gives a good basis to understand what cash flow would be like under a paid pilot/commercial agreement structure. If that burn is replaced with receipts then a CR is probably off the table in the immediate future. I would imagine that after announcing some good commercialisation traction and the commensurate increase in SP we will see a raise. Hopefully that’s at a price in the 30-40c realm which would lead to a strong move forward on an expansion of cash flow creating deals. The paid pilot scheme is identical in operational structure to the current trials just that its paid for by the client, not the business.

For me, I think it is imperative that they focus on getting the current strategy of hospital based devices implemented and to drive home their advantage in that field where they have first-movers advantage. At that point of success there needs to be something else to add to the mix otherwise we are a 1 trick pony which would limit company growth. This is where expanding the use becomes of commercial benefit. If they have cash flow and other opportunities that can be funded internally then that puts HMD at an advantage relative to all the other speculative device companies. I think these guys will commercialise faster hence I’ve pulled out of most of the other health specs that I own and have continued to increase my holding here.