Ann: Preliminary Final Report, page-73

I too enjoy your posts.

I also agree with what you have said regarding the sales trend if it were not for this statement today:

"June sales of $2.1M and 30+ percent margins allowed Alexium to achieve cash neutrality for the month, a key milestone for the Company. This sales and margin trend has continued through the reporting date. "

I don't think they would have pasted that had the same not occurred - now you could say that the trend was down - May to June - If that were the case I would be surprised because that would break trust in my opinion.

"Reaching economies of scale with supply chain partners and rapid growth in 2H2017 from our Alexicool™ product line provided the foundation for realizing positive margins, culminating with June 2017 monthly margins of 30.6%. This positive trend has continued through the reporting date closer to a margin goal of greater than 40%."

This also suggested to me that break even turnover would drop if margins are still climbing...

I think new management realise that CFN is supposed to be going forward.

There are some really green shoots for me that would require additional funding.

" The company developed six new targeted platform products in FY2017 to address large unmet market needs in bedding, cellulosics (cotton, fleece, wood), pillow shells, work wear, underwear/active wear and tenting."

" A blended product, containing Alexicool™, Alexiflam™ FR, anti-odor agents, binders and dye transfer resistant agents had a strong reception in the bedding market, largely in 2H2017."

"Alexium modified its initial Alexiflam™ NF product, following initial license negotiations in 2016, to successfully pass the strictest global durability standards for FR cotton - 100 industrial launderings for European workwear. This additional effort was a means of capturing higher value product opportunities with potential licensees. "

"In addition to the initial Alexicool™ product for mattress components, the Company developed three additional market-specific variants – semi-durable back coating for pillows, an “invisible” pad treatment for non-white fabrics (work wear), and a wash-durable combination of PCM and moisture-wicking chemistry."

Add to that Pegasus ...

So I read that the facility is to keep the sales momentum going , not to prop up the balance sheet because of losses.

However I must admit that I think my investment would have been toast without Alexicool. I just don't think the old management style would have carried the day. We would have not had the margin to survive in my opinion. Nor do I buy the " you had to fake it until you make it"