Ann: Appendix 4C quarterly and Company Update, page-2

I continue to be dismayed by the leadership and management of this company. Here's a few pieces from the quarterly:

It's FDA or bust. How's this for a US centric perspective: "Operations for the quarter were focused primarily on preparation for the planned U.S. launch of the RECELL Device, limited commercial sales efforts in selected markets in which RECELL is approved for sale"

Why bother marketing where you can already sell your product. Let's take the long road and burn shareholders, it'll be fun..!!

Then there's this brilliant management plan: Hire people to do sales and marketing, then use an external consultant to do sales and marketing: Wow, why pay just once? "During the quarter the Company continued to build out is marketing and sales team in preparation of the planned U.S. launch of RECELL. In addition, the Company engaged third-party advisors to conduct direct market research and other analyses to help develop the pricing and market launch strategies for the U.S."

Then there's this little nugget at the end: "Until such time that the Company generates sufficient cash flow from operations, it expects to fund its future cash requirements through a combination of the issuance of shares and potentially debt financing."

Brace yourselves, there's another CR raising coming, likely next Q before FDA - and it reads like BARDA is not going to come to the rescue with procurement. let's just hope it doesn't end up being a total disaster like the last one, which we're all still paying for with Regal dumping and placing a cap on the price. The knock on effect being the next CR is likely to drive it down even further.

Thanks team. Great job.

The only ray of sunshine in this story is that it looks like FDA approval is a foregone conclusion. That may produce a bump, but in the end it will come down to sales and cash flow. Always does. It makes me wonder how this management team will go there, given their stellar efforts to-date?