boat club sailing in, page-4

Hi Nick/Twin

Didn't realise there was a page like this on FB!, hence why i started my own although mine more skewed to pure spec.

Nice summary Nick, however i thought i would add on a bit in relation to peoples concerns around ADO's cash position as it's critical to avoiding dilution during the long lead times between licensing agreements, product intergration and subsequent cashflows.

ADO had a cash balance of $3.9m as at 30 Sep 2012 and quarterly cash burn of $1m. This burn rate was higher than previous quarters and can be expected to be maintained given the increased number of customers current testing 'Mix&Go', ADO is has 69 CDA's and 60 MTA's in place.

On the face of it, ADO would have to raise capital in about 9 months; however this assumption does not take into account 3 key points:

1) The $0.9m government research grant/rebate ADO historically receives in Q1 each year.

2) Expected cashflows from the "watershed" licensing agreement with eBioscience/Affymetrix. 'Mix&Go' is currently being intergrated into a number of products.

3) 2 paid "point of care" projects one with a large IVD company.

Given this, ADO should be able to avoid issuing equity until at 2014. Previous management guidance has also indicated ADO would be cash sufficient until March 2014 (Q2.2012 Quarterly Activities Report).

https://www.facebook.com/photo.php?fbid=382231885180816&set=a.374679502602721.78377.374677835936221&type=1&relevant_count=1