Ann: Activities Update Qtr Ending June 2023 and Appendix 4C, page-12

Abysmal past capital management aside, the company is procuring relatively non-onerous entry into Chinese markets in terms of cash burn. Sales growth is back on track after EU certification as we all expected. Whilst its base cash situation is undeniable, that burn rate should quickly slow as sales (hopefully very quickly) push towards the million a quarter mark.

Past share buyers have every right to be very aggrieved, but buying into a company that is probably growing sales around 40% (take out EU cert. changes), at $600K per quarter for a mere $12 million mkt cap, is rather a tasty punt. Clearly plenty of non-ASX investors, in the form of CellHeal, Majeton and A*star very willing to get involved in its business/product ventures.

Suspect a wealthy Singaporean/Chinese cash injection/placement will emerge in the near future and assuage more pressing base cash fears. I wrote to these guys over a year ago with a big red flag on the urgency for raising capital (with both their position and the cash mkts) when I had a little seed investment. The dismissive reply I received dissuaded me from buying more at the time. This precarious cash situation was all too obvious. Its always difficult timing the market, but buying in on OSX at these levels. Its boom or bust and its a decaying call option (via its cash burn vs sales growth returns). Feel very sorry for longer term shareholders who would have expected to see $1M+ a quarter sales by now and a very different base cash situation.

GLTAH on this company getting a cash injection to allow it to get to positive cash flows in the next year or two....