Ann: Half Year Accounts, page-2

Hi All, Just want to get it out in the open. The auditor has flagged KNL as struggling to survive as an ongoing concern as of 31/12/15 if financing does not come through. Since then $1.9mil has been raised $100k I will put towards costs for the raise. Cash balance currently unknown but $1.4mil as of 31/12/15. Total= $3.3 mil, minus 2.5 months of activity. There was debt $250k. I think this leaves approx $2.5 mil. This can last till the end of the year giving plenty of time to get finance without another cap raise imo. Costs must be lower now if less activity than last year which was very cost intensive with the BFS ext.