More spin from JH and no apology for the devastation of...

More spin from JH and no apology for the devastation of shareholder wealth for those who have been unlucky to hold shares in YPB. JH should be reminded that in the 10 years in the authentication and brand connect game, YPB has gone through $83m of shareholder funds chasing his 'Holy Grail' and then having the gall to now state that the September quarter has been "their best ever quarter", based on sales of $207k for that quarter.

IMO, YPB has never been closer to 'going under' than now.

There was a lift in sales for the September quarter but that was against a backdrop of receipts for the first 9 months of 2023 being only $385k (when account is taken of the $250k court settlement). With some creative accounting, interest on borrowings and any part or full payment of the NVISIO licence was shifted out of the operating activities numbers to be treated as financing activities and investing activities, respectively. Rather than praising themselves for the lowest operating cash consumption in any quarter, look at YPB's cash burn for the quarter at $825k (starting the quarter with $1036k in cash and cash equivalents, add JH's $500k loan, bringing the cash available to $1536k, and upon ending the quarter with $711k, means that $825k was spent in the quarter). This is by far the better measure of the ability of a company to pay its bills when they become due.

The $711k cash and cash equivalents going into the December quarter should see YPB get through the December quarter, but it will be very tight, especially if sales receipts fall back on the trend line that saw many sub $100k quarters in 2022 and 2023. YPB will most likely run out of money before they get to 2024.

The $1m convertible note issue for all intents and purposes is a debt given that it is a loan secured by a charge over YPB's assets. That somebody or an entity holds a charge over the assets of YPB should be sufficient deterrent and impact negatively on any future CR.

The $1m convertible note issue has not been settled and based on previous announcements which suggested October 3, or November 18 as the 12 months anniversary date on which it has to be settled, it is the elephant in the room and it requires it to be settled during this quarter. YPB does not have the cash to buy out all, or a part of this debt, A swap of this debt for equity adds some 500m shares to the 743m shares currently on issue, and the dilution effect on YPB's share price will virtually guarantee that there will be no CR in the immediate future. To explain this, based on YPB's current share price of 0.3c, the terms of the convertible note issue provides for a 25% discount meaning JH converts his $1m loan into YPB shares at a price of 0.225c and gets 444m shares. When this quantity is added to the number of existing shares of 743m, the dilution effect on these 743m share is around 37.5%, bringing YPB's share price to a theoretical low of 0.19c. So just after buying 444m shares at 0.225c, he causes the YPB share price to fall to 0.19c and his $1m becomes $850k in value. As such, I think this is hardly a move that JH will even contemplate.

It also suits JH not to do a debt for equity swap as he would lose the $15k per month interest income and also lose the charge he holds over YPB's assets.

I don't believe that YPB can do a CR if their share price is below 0.3c.It's not long to wait to see what this statement in their 4C means..."the Company is exploring the establishment of a financing facility which it anticipates being finalised in early November additionally the Company intends to call a meeting of Shareholders before year end to seek approval to raise additional capital"