Ann: Appendix 4C - quarterly, page-21

Had a bit of a scramble with @kearneymaurice's voodoo magic.

This is a rough estimate of next quarter cashflow based on a few things.

The 31 Dec receivable figure is estimated by the following:
Unpaid invoices as at 30 June 2016 = $537,483
New invoices raised between 1 July to 31 December 2016 = $2,225,000
Invoices paid between 1 July to 31 December 2016 = $2,192,000
Invoices outstanding as a 31 December 2016 = $570,483
$537,483 + $2,225,000 - $2,192,000 = $570,483

You take $570,483 and add a R&D rebate of approx $350,000 lets say, and then also an assumed amount of $573,267 from Merck for the first shipment of Alusion. The exact dollar value and timing of receipt from Merck is not totally known, but they have told us to expect up to 20 tonnes for 2017, which is about $1.2 million.

In addition, the 31 March estimate does not include orders that will be raised and paid for within the same quarter (which is highly likely, even perhaps orders like the $450,000 Deveraux one listed above) that may not have been invoiced before Christmas and will easily be paid within the quarter. We will get some better insight into this in the half yearly when we can see the regional revenue breakdowns.

The company does not have any issue with bad debts so safe to say they will collect all receivables due.

Given the anticipated reduction in outflows ($717k vs $948k) it's hard to see how cash is going to go backwards rather than forwards. I think we will quite easily end the year with a cash balance sufficient for a dividend return to shareholders considering the board will have even less requirements for capital expenditure under an outsourced manufacturing operation.