Ann: Company update, page-9

NYC hopefully you are pleased with the half yearly being released.

Personally I still believe there is a very good product here, it is making penetration, slowly but we are talking about businesses making a substantial $, time and process commitment so this is to be expected. Hopefully we see more labs within organisations come to the party a bit quicker than new customers with processes and advantages proven within organisations. The big news is the quality and size of recent adopters, this is a selling point for new customers, which we are probably already capitalising on, and the potential for significant expansion within these organisations as benefits are proven. The other big plus is that every customer is recurring revenue.

For me it has been disappointing that first half revenue was down on the previous year but I would expect lumpiness in revenue so early in revenue development.

What irks me, and I hope they justify this on Monday, is when they planned to significantly expand the sales team, why did management not do a significant raise to ensure enough funds to cover expenses for minimum 12 months preferably 2 years until revenues were closer to expenses. Leaving the raise until they are almost insolvent has meant the raise is at 0.7 instead of 2.5 and many are concerned about survivability. This seems like very poor financial management and needs to be explained.

In the end, if they can raise sufficient funds to keep going for 2 years, IMO this can be successful, So the question is, lose everything and let them falll over or stump up and get the business through the next 12 months. Personally I think there is light at the end of the tunnel and throwing it all away would be crazy.