Hi there, I have been following Admedus for quite some time and...

Hi there,

I have been following Admedus for quite some time and own a decent quantity of shares. I was wondering if anyone knows the terms Admedus extends to their clients? In my industry it is not uncommon for one of my clients to have terms ranging from 90 to even 120 days before payment is due. This concerns me with the upcoming quarterly. I can see any business like this potentially being up to 6 months behind with respect to actual revenue vs product shipped.

The last quarter reported receipts totaled 1.9M with 2.5M in revenue stated. That would mean Admedus accounts receivable was waiting for payment totaling 600K which could be realized in this quarter (although depending on the terms may not be realized in it's entirety). In addition, the orders from 20 new centers may in fact not be realized in this quarter as well (depending on the terms again). Also, these initial orders may only be small quantity purchases until the surgeons get comfortable using CardioCel. This could leave us with 600K + any new orders from centers in which they have paid for goods within the past quarter (I doubt that many of the orders shipped out in June will count towards this quarters sales).

In addition, I see the cost of doing business remaining around the 5M/quarter mark which according to forum feedback is unattractive (even though it may be necessary).

My question is that aside from seeing considerable cash in the bank as a result of the previous CR what increase in revenue would have to be seen to keep recent buyers off of the sell button once the quarterly gets released.

I think this is a valid question that should be considered. My prediction is we will see revenue anywhere between 2-3M. Is this enough? In addition, we have all seen what happened after the capital raise with consistent small quantities of stock being sold off until mid June keeping the share price depressed. I would hate to see this increase in share price being another opportunity for the short term holders to capitalize and bring down the share price to sub 7 cent levels once again.

Any feedback is welcomed.

Thank you

Jay