deal time?, page-12

sovraks1 your analysis is too simplistic, if you took the time to delve deeper you would realise ADO's cash position is more than adequate:

"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 currently testing 'Mix&Go', ADO 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 2014. Previous management guidance has also indicated ADO would be cash sufficient until March 2014 (Q2.2012 Quarterly Activities Report)."