Ann: Appendix 4C - quarterly, page-76

Good post mate and I am not going to get into a back forth with you as we have done that too many times in the past. I just wanted clarify one important point.

Our goal is not to break even this year. We are forecast to lose 6 million. Our goal is to start producing CF+ quarters starting with the Dec quarter this year reported in January 2019. Breakeven to mildly profitable (4 million) is forecast for CY 2019.

For various reasons which I won’t go into detail here except to note some examples (TGA approval, SE Asian sales, Mexico, full 3D launch in US, 3D launch in Europe, Egypt, Indian sales, GPO / IDN contracts etc etc) significant revenue growth is skewed to the second half. 3D selling at 4 to 5 times a regular patch and already trialed by 10 hospitals will make a fair contribution this year.

Apart from that a Vax deal is still a possibility and TAVR is certainly a possibility and a much higher chance of success than any drug development ever was.

So again, good post and thanks for highlighting the costs and your assesment. The real unknown is when the bulk of our revenue will come in (My guess is the last two QRT’s of 18 although I am expecting a noticeable lift in Q2). If Infusions keep out performing forecasts than I think we could easily do 35 to 38 million revenue this year.

I am also not convinced that the increased staff costs forecast next quarter can be taken as the new average costs going forward (I do except that they appears very high). I have a feeling that there may be some one offs in there. Either way with the company on a solid footing, margins improved significantly, new geographies coming online and new products to sell now is the time to ramp up our sales presence. It has always been the plan.

As always it remains to be seen but I am very happy with our progress, the exciting 3D product pipeline and the TAVR IP we hold. At less than 2 times forward sales we are hardly priced for perfection and significantly undervalued compared to some peers with similar opportunities (or less) than ours.

I remain confident in the company, products, the plan and management. It’s the different views that make the market so thanks for yours.

DYOR and Not advice.

Exciting times ahead (IMO)