General Comments, page-21

I'm simply a small private investor, not active in the penny stock sector but with a corporate finance background. A colleague put me onto NHL some time ago, I liked the story I bought some on spec and have been on the ride since. Thankfully above water at present! My background means as a matter of course I actually follow and study the stocks I hold and think the Tali technology is a game channer. All the news, endorsements, accolade and regulatory approvals are great. This success has been capped by the granting of a US Authorisation Codes (CPT code) for Tali Detect and Tali Train, an aspiration of all emerging biotech companies.
What worries me about NHL Tali Train is that has been commercialised in Australia since mid 2018 with all the requisite regulatory approvals and NDIS reimbursement authority. The company has told it has many providers and schools usiing Tali Train but all this has not translated into significant sales. I am guessing, but when the company raised $2.8 mil. at $0.031 per share in July 2018, the professional investors that participated in the placement, would have anticipated continued growth in customer reciepts illustrated in the following chart.

As receipts fell rather than rise, disappointment set in, as illustrated in the slide in the share price. To satisfy the going concern requirements for the company's annual accounts it was forced to raise a further $1.6 mil. in capital at $0.010 per share in September. Presumably the company was holding out for some positive news, such as the CPT code announcement, but couldn't wait any longer and forced to proceed with a highly dilutive new issue at 1.0c.

This raises the concern on the competencies of both the board and management. The board's failure was not having a contingency plan to avoid the substantial erosion of shareholder value by being forced to issue new shares at 1.0c to satisfy the going concern requirements and to have approved and pursued a sales strategy that was clearly beyond the capability of management. The failure of management is not being able to execute a sales strategy that can realise substantial sales from the all providers and schools that we are told are clamouring for Tali Train.
I would like the board to address this failure at the forthcoming AGM in its presentation and provide tangible user and revenue targets that can guide shareholder how the commercialisation is progressing. At present we are in the dark as to why there is so much optimism but revenue is not following.
If the company is unable to make a quick break through into the Australian market with all of the local regulatory support and goodwill, what hope do they have in more hostile markets.
Management are sanguine about the competition but I'm not as optimistic. The plaudits for the Tali products have drawn real attention to the opportunities and probably galvanised some serious player in the attention disorder therapeutics sector to act. All the good news on Tali will have illuminated a major market opportunity or a major threat to an existing revenue base. They have two options for potential big players; buy Novita or spend some serious of money an replicate the functionality of the Tali products and have it to market by the end of 2020. The former will probably be good for NHL shareholders, the latter would make life very difficult.
As the company is as of today is in a trading halt until Monday, all of the above may be piss and wind!!!