Ann: Quarterly Activities Report, page-4

From the report : Net operating cashflows for the next twoquarters will be reduced as result of completion of the transitionperiod for the sale of the mannitol business unit (MBU). Staff andoperating costs of the facility ceased as from 1 February 2024. Staffcosts alone will decrease by approximately $1.0 million in each of theJune and September quarters (compared to the March quarter).Other costs related to the MBU will also cease or substantiallydecrease.Existing lease payments will also cease from thetermination of the lease in mid May 2024 and be replaced withsignificantly reduced sublease costs for the small area now beingoccupied by the company. Lease payments will decrease byapproximately $0.4 million in the June quarter (compared to theMarch quarter) and approximately $0.7 million in the Septemberquarter (compared to the March quarter). In addition, the company is expected to or does alreadyhave additional cash funds available from:• the return of all or substantially all of a securitydeposit of $929,000 due to be releasedsubsequent to termination of the company’slease over its Frenchs Forest facility in May2024;• a payment of $723,000 received in April from thepurchaser of the MBU.Taking only the reduced operating cash flow staff costsand the reduced lease costs specifically referenced above, the returnof the security deposit and the payment of $723,000 alreadyreceived in April from the purchaser of the MBU, the company wouldhave over 2 quarters of funding.In addition, the company is due to receive a total ofapproximately $5.3 million from the purchaser of the mannitolbusiness unit for amounts due in connection with the sale whichincludes amounts to be reimbursed for the company’s transition