Okay, the presentation pretty much speaks for itself I think, I...

Okay, the presentation pretty much speaks for itself I think, I was focused more on what Doug and Barrie were saying than the words on the presentation. 17 investors registered for the investor session although there was only around 10 there plus the IR people and Doug (CEO) and Barrie (CFO). There are 23 investors registered for the Sydney session on Thursday.

The Hologic deal has been a long time coming, the conceptualisation of test was being worked on whilst before Doug joined LDX as CEO. LDX is extremely confident that this first product for Hologic will make it to market, just a matter of timing with all the work that goes into creating, validating and getting approval for the product. As mentioned in the announcement, the current diagnostic test is very outdated and is in need of updating so Hologic are very keen to see this through to completion, along with a number of other tests.

The important part is that once this test moves into the verification and validation stage that then frees up the design staff to then commence work on another project, thus enabling another deal to be entered into.

There is tons that the company would love to do, but it all comes down to dollars and opportunity cost. Which options will keep the company afloat and making the most money? UriDx and SepsiDx are in the bottom drawer indefinitely because of this. ViraDx, despite its sales, now will very likely go in the same drawer once the EUA ceases as the company does not have the $m's to go down the 510k path any time soon, however they'll keep manufacturing and selling them whilst the EUA is in place.

They see product revenue picking up nicely in the current half, but that will come at a slight cost. As they are currently running a tight ship they had to shift resources in order to commence manufacturing. This means that the half year results due at the end of this month will see a slight dip as some of those staff were helping ramp up manufacturing of FebriDx and ViraDx. Those staff were back doing their usual work very quickly we'll see the services side bounce back in the current half.

The company still has a lease in place for the larger site in Carlsbad however that is mostly being used as a warehouse at present as the current site is able to meet their requirements. The lease arrangement, signed prior to Doug joining, was basically for an empty building so will involve a fair bit of time and money to fit out. They will go down that path as demand increases as they anticipate outgrowing their current facility.

The company is quite confident that the funds from the Hologic deal along with product and services revenue will mean that they will have no need for outside funds for working capital. They would not commit, however, to a timeframe on when they anticipate being cashflow positive from recurring revenue.

Anyone that is in Sydney, I recommend getting along to the investor session. It was good to hear from the company and being able to ask questions.

Oh, and Doug and Barrie weren't just in town to meet with us investors, they are also meeting with brokers and the like to get the Lumos message out there.