Ann: Appendix 4C , page-6

Response to ASX query confirms my earlier thoughts on 4th quarter cash burn over stating underlying negative cash flows going forward.

Positive is statement is Jan sales up $194k (+27%)and EBITDA of +$58k. Given Jan is probably a slow month this is good news.

Negative is "considering capital raising in the short to medium term" but this seems to be linked to "expansion of the business" rather than current run rate ("the company expects to have some negative operating cash flows in the future referred to above but these will largely be offset by expected R&D Tax refunds and increased sales in future periods").