Was not expecting much from this quarterly but, equally, was not...

Was not expecting much from this quarterly but, equally, was not expecting the report to be so tragic. ADAPT sales down $100k on last Sept18 Q to $3m. Overall sales receipts down 14.4% from SeptQ. Net cash burn up 7% by comparison with only COGS showing a significant movement of 29% down against SeptQ, most likely attributable to inventory build up in the SeptQ, not likely radical COGS production improvement. (Excessive inventory build up not translating into expected expanded DecQ receipts?)  

Infusions to be divested. Infusion receipts last quarter were $3.5m. So if sold this quarter, then revenue totally dependent on ADAPT sales, running at $3m a quarter. Maybe between $12 to $15 m for this CY/FY. AHZ stated expenses for coming MarQ at $15.5 m. Divesting infusions may lower costs attributable to that division by $1.5m per quarter. Annualised FY19 estimated receipts based on running ADAPT sales rate between $12 to $15 m supported by estimated costs of $56 m ($14mx4).  

R&D. No explanation supplied as to the reason for explanting the ADAPT 3D aortic valve from the sheep. Was the explanting due to malfunction, extraneous reason (eg, sheep died or was euthanased due to some other pathology) or euthanased as part of the animal study protocol? The other sheep are monitored with ECG. The reason may make a difference to any licence agreement being struck short term. 

Slightly positive news: total costs dropped 5% from $13.002 m to $$12.283 m Sept to DecQ. Fairly inconsequential considering $50.3 million spent to support $28.1m in 12 month receipts. 

Appears another capital raising on the cards this quarter, next quarter at the latest discounting for the miraculous.