Positive outlook for FY 2020Commenting on the outlook for FY...

Positive outlook for FY 2020Commenting on the outlook for FY 2020, Dr Brookins said: “Alexium has transformed to focus on high margincornerstone initiatives that will underpin sustainable growth, allowing us to commercialise our world leadingtechnologies in partnership with key manufacturers in target markets globally. We are encouraged by the quarterlygrowth in cash receipts over the past six months, and anticipate this momentum continuing in FY 2020. We expecthigher sales to result in positive EBITDA being generated by the end of the 2019 calendar year.

Revenues from ordinary operating activities were down 58% from the prior year at $5,059,039 (2018: $11,911,816) as the companyfocused on commercializing speciality products with substantial profit margins and shifted away from low margin revenue streams. Thisdecrease in revenue was partially offset by an improvement in gross profit for the period which was $1,605,742 (2018: $2,354,942)representing an average gross margin percentage across all lines of business of 32% (2018: 20%). This is a result of the Group’s shift to animproved business model

As at 30 June 2019 the cash position was $3,843,343 (2018: $10,641,763). Cash and working capital management remains a top priority.Cash burn continues to decrease on a quarterly basis as sales increase and non-essential operating costs are brought into check.

We are at the cross-roads folks.