Ann: Half Year Report and Accounts , page-4

Decan,

It was interesting to see your shareholder breakdown & projections for the SPP uptake.

There are a couple of things you haven't taken into account when you question whether your projections were overly optimistic and/or how long the cash will last.

Firstly, whilst the SP is down from the SPP price, there's another month to go before it closes ... plenty of time for good news to bolster the SP. I'd be surprised if various items of good news don't start to come in within that period of time, hopefully one or two of them enough to give it a kick along.

Secondly, the 'other' capital raising you referred to is apparently not that far away (this is not news; it was mentioned in the release, but I've good a VERY strong hunch it will occur quite soon). This might also help with the SP (i.e. more confidence in regards to sufficient funding to get them over the line).

Finally, the cover letter that came with the SPP info & shareholder update / newsletter (both released to ASX, but not the cover letter) mentioned that they are expecting $6 million in revenue in the 6 months to 30th June (up from < $1M in the previous half, if you check the half-yearly accounts). Given that the letter is dated 25th February, this should be a relatively accurate forecast ... 2 months into the 6 months.

$6 million should help reduce the cash burn rate, and given that there is $67 million forecast for the following year you'd imagine the revenue would be accelerating on a monthly basis, especially from June/July when the extra SUS production is up & running (huge volumes / top quality / cheaper prices due to volume & all-in-one-place manufacturing in the Malaysia & Poland factories vs. the current China -> U.S. flocking process). Therefore, I believe that the closer they get to June / July the more cash will be flowing and they will accelerate to & past 'break-even' to profitability quite rapidly. We've just started March, so it's not that far off.

Granted things will be a little 'tight', but I believe the picture is rosier than your post might have implied, whether you meant it to or not.

Cheers.