Ann: Appendix 4C commentary , page-2

Ouch!

Very lucky that the rights issue has been underwritten...I hope the agreement is water tight.

REVENUE ANALYSIS

Receipts = 1.738m
Trade debtors at 31/12 = 1.303m
Trade debtors at 30/6 = 1.861m

Thus, revenue = $1.18m for 6 months. (Hopefully my analysis is wrong)

If this is correct, then this is a very sick picture. And how wouldn't they have known this at the AGM, and also when the rights issue was announced.

CASH POSITION

I assume they got in some receipts in early Jan as they didn't have enough in the bank to pay Lord $1m. They must have been scraping the bottom of the barrel. 4C confirms IMO that they haven't raised enough capital. However, I assume that if they raised more, they would have needed to go through a more formal process, which would have flushed out the detail we are seeing today. And can't see such a raising being done at 0.5 with this detail now out.

Looks like shareholders are going to have to continue to pray they land a massive deal to turn this around.


Good luck to all holders...