During The Quarter:  SMS entered into negotiations to execute...

During The Quarter:
 SMS entered into negotiations to execute an agreement with a major aerospace organisation designed to provide the scale and path to a material global licensing/royalty revenue for CVM™.
 SMS completed the testing regime for our CVMTM sensors related to the Sikorsky Helicopter Programme and the sensors clearly exceeded the requirements for the probability of detection (“POD”) measurements for the chosen test application.
 SMS look forward to potentially multiple FAA approvals for applications on rotorcraft in the foreseeable future.
 SMS confirmed the successful install of CVMTM sensors on the Apache AH-64 attack helicopter fleet operated by one of the world’s sovereign defence forces.
 SMS, Sandia and Embraer collaborated to select representative “hotspot” applications on multiple aircraft types. Currently, three far-reaching, generalised CVM™ Service Bulletin (“SB”) revisions have been written for entire aircraft regions (not just single applications) – this represents a dramatic advancement in more global CVM™ approval.
The twin goals of the Programme are to obtain general approval for multiple applications on multiple different aircraft from global regulators, and most importantly, to have CVM™ as a fully mandated, recognized and accessible tool for future maintenance needs which would not require any subsequent, or case-by-case regulator approval on these aircraft.
Currently, we are informed that the pre-requisite approvals from the domestic aerospace regulator will be finalized in Q1-2017, followed shortly thereafter by critical FAA approval, essentially a formality given the bilateral agreements in place between all the major global aviation regulators.
 An Australian broker/investor roadshow was completed during April 2016.
 SMS does not expect any foreseeable need to issue any further shares at any time in the future.
 The Company continues to meet all necessary expenditure needs and is, per usual, operating with demonstrable financial constraint and responsibility. The Company’s key operational and strategic objectives remain well-defined and visible.
 The Company’s cash balance as at 30 June was approximately $A3.5m, and sees SMS fully funded relative to its foreseeable total cash flow requirements for 2016/17. Additional equipment sales are expected, and these will further bolster the Company’s cash balance.
Next Steps:
 SMS is excited to have the support of all of our industry partners and investors as we mature the adoption of CVM™ across the civilian and military (fixed-wing and rotary) aerospace sector.
 The Company will be providing updates regarding important progress and developments pertaining to the Company’s activities with key partners including Delta/Boeing, Sikorsky, NLR/Apache, Airbus and Embraer/Sandia.
 The Company will hold a conference call on Tuesday, 16 August 2016 to provide an update regarding the increasingly positive status of our various programmes for CVM™ technology. Details regarding the time and dial in information for the call will be provided in due course.