Ann: Appendix 4C - quarterly, page-2

Much reduced cash outflow, despite the deferral of receipts into Q4.

They’ve taken a massive 70% out of their staff costs, yet they’re still budgeting $1m for R&D in Q4 on new sensor design.

Q4 revenues should be much higher (rising Astra Zeneca volumes and payment for delayed production). 2019-20 revenue projections could surprise on the upside as the roll out has a long way to go.

Looks like they’ll end Q4 with $500k to $1m net cash. The company is well embedded with Astra Zeneca, who are also a large shareholder. That gives comfort.

This is a hot sector, so I’m awaiting strategic developments. The valuation gap between Adherium’s AUD 6m market cap and its big rival Propeller’s USD 225m is a joke.