Ann: Appendix 4E & 30 June 2018 Financial Report, page-78

I know of no better tax rule where you write off the R&D expenses and claim your R&D incentive from the government. Really capitalising something is just a different view on things but unless the company can make money on the products they sell the capitalisation is worthless.

There are articles expressing that capitalisation of development costs in the realms of ongoing and continuous development will cause a smoothing effect on the charges put through the income statement. However, you also need a policy to start depreciating them to get that impact. This is year 1 so no charge.

The reality is that there has been a change of policy and had there been no change there would have been higher expenses and a greater loss. I actually missed that and thought they had dropped their expenditure.

Really anyone thinking that the auditors' reports are readable these days makes me wonder what they are thinking. They used to be "true and fair" and they went to "fairly presents" now you have to read the notes and then their approach and after that, they say its all up to the directors anyway but they express an opinion.

Really the reality is that this company has one great product that they haven't cracked sales in volumes and one product within a crowded space as I understand it.

Really the 40% margins gone. The high volume no margin sales gone. The contracts don't seem to deliver turnover.

So really this company needs a deal and the best fix would, in my opinion, be a deal on FR. It has a chance of that and that's what you are betting on. The Alexicool will have to prove its superiority and that the market will pay a premium for that for it to command a premium price. It will, in my opinion, pay some of the overheads but the game changer is that the company needs to get FR out there or the wild card develop some other novel chemical application - not unlikely so maybe it all comes together. However there are a lot, I am included, shareholders and ex-shareholders who feel that what we thought we had and where we were within the business cycle was not the same as reality. Those parties have left the stage but at a great cost to the company's credibility.

Those warning others here are just doing what is natural. They may well be right or it may have all changed but others views are as valid as those that still or recently believe in this.