YPB had cash and cash equivalents of $1.049k at the start of the...

YPB had cash and cash equivalents of $1.049k at the start of the June 2023 quarter and this included 900k from the CR. The balance of the CR of $1.1m was included in YPB's estimated cash available for future operations statement. Without the $1.1m injection, and based on cash burn of $700k in the June quarter, there's like $350k in cash and cash equivalents at the start of this September quarter. That being so, YPB will run out of cash sometime early in this September quarter. At a cash burn rate of $700k per quarter, the 2nd stage of the CR which is supposed to provide $1.1m of funds will only last until the end of the year. It is for this reason why I have concluded that YPB hasn't got the funds to pay out the $1.150m loan (let alone pay the $150k of interest and establishment charges that were capitalised into the loan).

Further, you have to take into account the negative impact of JH's instrument giving him a charge over the assets and the limiting the ability to do a CR in the near future.

Most of the past CR's involved 'sophisticated investors' buying shares at a substantial discount on the going share price, giving them a good buy/sell spread and they could quickly unload their holdings, get their money back and take a good profit. The difference with the with the last CR, is that by the time these investors had to pay for their YPB shares, YPB's share price had fallen below the price they paid for their allotment of shares and therefore had no chance to unload and get their money back. They're now seeing their investment in very bad shape and worth much less.

It's the bad news that will come from this next 4C Announcement of stagnant sales revenue and operating costs that are running at 8-10 times sales, plus the fact that YPB's shares are on this downward trajectory and could finish below 0.2c or lower. Should this happen, and IMO it is very likely, there won't be any room to set a share buy price that would tempt investors to take the risk.

It is for these reasons why I think YPB hasn't a hope in hell of doing another CR soon, the JH loan repayment is going to drive a serious cash flow issue.