Ann: Quarterly Activities/Appendix 4C Cash Flow Report, page-14

I wasn't far off with my $751K revenue prediction.

Pros:

• They have exactly halved staff costs which is good, but entirely necessary - no way they could keep splashing $1.5M p/q on this.

Cons:

• Corporate costs are up 67%.
• They are being kept afloat by another Government grant, which artificially makes it look like they have 19 quarters of funding left. They don't, because that Government grant won't be in the next quarter. Without the grant, they made a loss of ($1.8M) so on that basis, with $4.3M cash they have only another 2.4 quarters runway remaining.
• The "net cash" position of $8.7M is misleading as to access anything other than their existing cash would require them to call the loans back (i.e. they would have to cease their core business just to pay their bills). That's why 8.2 of the ASX template only shows $4.3M cash, and zero for 'financing facilities available' as these are for loans, not to pay the company's operating expenses.

I don't see any turnaround yet; cash is going to get very tight.