Ann: Chairman's Letter, page-4

Of greater concern should be the potential imminent need for a CR. $1.4m cash at bank and cash outflows from operations some $16m for the period. Only a marginal improvement on the $17m prior year. Hopefully the company has very supportive bankers because short of asset sales they will seriously need to increase borrowings or more likely a CR. This Titanic isn’t heading away from the iceberg anytime soon so ongoing funding will be a problem (not to mention repaying / renewing facilities).

For those who are accountants out there - the ongoing recognition of the deferred tax asset on the balance sheet is an absolute joke- as is the current period income tax credit. The auditors hanging their hat on management modelling for ongoing recognition is a laugh given nothing management have attested to for 5 years has come close to being sound. Go figure.