The quarterly cashflow report shows a $1.8m loss for the first...

The quarterly cashflow report shows a $1.8m loss for the first quarter.

At 30 September 2011 there remains $1.7m cash in the bank.

So basically there are a few options:

1. Operate in a cashflow surplus for the second quarter or at least better than the first quarter
2. Raise more funds from Kazacos
3. Raise more funds from shareholders

They cannot afford obviously to have the same performance in the second quarter as the first as they will run out of cash. I don't know the IT environment that well as to know whether first quarters are historically poor and things pick up from that point onwards?

There is no real evidence with AYG in the past since generally it has been just different degrees of cashflow losses as opposed to surpluses.

I have a kind of morbid curiosity watching AYG at the moment - from a financial point of view things look pretty bleak, yet management comments only on the business's they are buying and how promising the future looks.

I said 6 months ago that I have no idea what is going through managements head and they obviously have an agenda with what they think AYG can become. I still have absolutely no idea.........