The exchange re expenditure on Elixia brought me back to the old...

The exchange re expenditure on Elixia brought me back to the old question of cash burn and how long has POH got to make its commercial breakthrough before the cash runs out(cf. the controversy re delays).

Looking again at the 30/6 report, I was quite surprised.
The bald cash outflow figure is $6.47m (before interest receivable). Assuming expenses will accelerate as the OXY trials heat up, additional consultants, etc., and other projects unlikely to be big moneyspinners short term, the $21.56m at end June could be largely run through by this time next year - not a lot of room for slippage.

However, looking beyond the bald cash flow statement, a rather different picture emerges. Creditors were paid down by $2m, other assets/liabilities broadly flat, so that net running expenses are well below $1m per month.

Conclusions?

- the net expenditure supporting Elixia was negligible
(on the negative side perhaps, inventories did not rise at a time of roll out of theproduct....)
- at this point, they seem to have the necessary in hand to see them through to proof.