Ann: Appendix 4C - quarterly, page-8

Hi Verce.

You seem like a decent fellow. This is not personal, as you say lets be objective.

The company has 1.2m of cash at bank, and is forecast to expend 5.5m of cash in the next quarter.
Where is the capital going to come from?

Yes there is an overdraft facility for up to 5.0m (we do not know what the interest rate is but given the trade finance facility is 9.5% safe to assume the rate is going to be higher on the overdraft facility. What are the other debt covenants?)

As I have said previously based on current expenses and current gross margins Vivid will need to do at least $18m if not more to be cash flow break even. (Highly unlikely to occur as you say with only 8 weeks to year end)

Even if the company does $11m in revenue its a long way short of what is needed to break even.

What is scary is that they seem to be increasing employee costs with the new head of marketing and sales team hires ... like $4m in employee costs wasn't enough? Agree the loss of the CFO was a big loss. Not a vote of confidence from a person who would have better visibility than any of us on the outside.

BTW, don't read too much into the share price movements. Volume was pretty light.

The company should raise now while it can at a relatively high price.

In my opinion in the absence of new large contracts, the price will drift lower, as the prospects for a dilutive capital raise increases. How easy will it be to raise capital when the debt facility is fully utilized? (Yuck)

Why do I get the sense that I have seen this movie before!