Ann: Appendix 4C - Qtr Ended 31 March 2020, page-4

So I've now had the time to review the Quarterly we all knew was going to be bad. And yes, i can confirm that for once BLG have not let us down - it was bad!!!

One of the many BLG management issues I've been critical of over the past few years is their almost complete inability to 'live within their means'. They appear completely unable to prepare an expense budget and stick to it within a reasonable percentage. Their published Cash Burn Rates have really been 'flights of fantasy'.

One can always forgive/accept to some extent discrepancies in annual budget forecasts for expenses as they are prepared in advance of the period. And as we all know, a year is a long time in business. However, Quarterly forecasts for expenses should be far more accurate. I would expect a fair benchmark discrepancy for a Quarterly expense forecast estimate to be 5%, particularly if averaged over time.

Consequently, in reviewing the BLG 4C's over a lengthy period i haven't focused on the published Cash Burn rates but instead on a rather more accurate, imo, benchmark being that of the BLG published quarterly expense estimates, which appear in all 4cs. That is, except the one published this week as BLGs cash position was so dire at the end of March they clearly would have been unable to trade for two quarters, a benchmark requirement for the regulator, without a cash injection.

So i'm sure no one will be surprised to learn that BLG consistently fails to achieve their own published Quarterly estimates forecast for expenses. Their average discrepancy for a Quarterly expense forecast is 13% in excess of their own published estimate, which to me is simply astounding!!!

What ever happened to that great business mantra of 'Under Promise, Over Deliver'?

I posted earlier this year, after BLG's published Dec 2019 4C the following ".......because their performance in this regard is 'patchy' at best, at worst its misleading'.

Clearly BLG need to acquire some financial management skills. Their blinding disregard to be financially disciplined simply adds great substance to the 'Science Club/Sheltered Workshop' view of BLG.

If you want to be taken seriously, act the same way!!

And finally, of course, the other MAJOR standout from the 4C was once again the lack of income/revenue. Yes, mildly impacted by COVID-19..... 1 month?

Regardless, the sad FACT is that BLG's average quarterly income from receipts from customers over the last 4 years is only $150k per quarter.

Just to add further emphasis to that rather stark number is the FACT that BLG's average quarterly expenses, excluding purchases of Plant Equipment, for the same period is $1.8mil.....

So nachers', lets all just hope that part of BLG's new "focused" approach includes the urgent task of developing some financial management skills, and that they start 'doing what they say they are going to do', even if that starts simply with complying with their own published expense targets.

GLTAH.