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

"What would it take do you think? Over $1m quarterly cashflow seems pretty impressive for a sub-$20m company with unique technology, industry tailwinds and c$2m in the bank."

Don't think you should consider $1m quarterly cash flow to be a normalised figure; it includes a government grant of $660k

And if it wasn't for the $1.8m of government grants it received over the past 2 years, the bank account would be almost empty.

So, it's a growing earnings story, but cash is yet to come out of the business because that growth requires investment in working capital:




[* Free Cash Flow = Operating Cash Flow (exc. government grants) less PP&E spend]

In essence what has been happening is that the government grants are being applied to invest in working capital (which has risen by over $1.0m over the last 2 years).

At some point, when the company reaches a position of adequate scale, the rate of working capital drag will slow and that's when the surplus capital will start to be generated. But we're not thee yet.

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