Below is a comparison of the Feb & Apr Investor Updates (Items mentioned in Feb first ....then commented on in Apr Update)
Sales Forecast - $100k pm ave up to June 2008.... Actual = $94k pm for 1st 3 months = WELL ON TARGET TO ACHIEVE as Sales have increased 235% this quarter
OP Cash Flow Break Even for sales - $180k pm..... Actual = OP Expenses reduced to $141k pm = 15% Reduction = EXCELLENT
Forecast OP Cash Flow Break Even by last half of 2008 CY....WELL ON TARGET (See posts by GSW, Sicily & Others that calculate this will actually happen by next quarter)
Bioscreens, China, Visualine - last half of 2008 CY... Unchanged but NOW INCLUDES ORALINE 8
Shareholder funding - june Qtr 2008....Unchanged
Quarterly Updates Promised....Occurring
Bioscreens launch - Sept 08 qtr....Unchanged but currently being promoted In Texas tradeshow NOW - my understanding is that they are taking orders now
Visualine re-launch - Dec 08 qtr....Brought forward to Sept 08 qtr = EXCELLENT
Mexico - 2000 units supplied - Future - unknown.... Trial completed - decision expected by July 08 - if approved - Sales commencing Sept 08 (Again see posts by GSW - Mexican papers with relevant politicians stating that it is going ahead)
Russia - Regulatory approval - October 08....Continuing - but no sales expected in 2008
New Item - Poland - no sales expected in 2008
New Item - Actively seeking partners in UK
New Item - Waiting for Oraline 8 before actively pursuing European market
New Item - Australia - market too small - not actively pursuing but Mining & Metals industry showing interest
China - trialling stage.... Evaluation by Jun 08, if approved- field trials Nov 08 = ON TARGET AS PER SiYi AGREEMENT.
China - found manufacturing plant site.... Have asked management at what stage the plant is at - no response yet but a clue can be found in the Working Capital funding requirements section of Apr update - indicates that this is progressing
New Item - Latin America - utilising US Govt export program - targetting four countries to lay groundwork = EXCELLENT - Using US govt to find new markets (similar to AUSTRADE)
Avitar - discussing settlement terms.... Settlement reached & with the court - confidential = PATENT PROTECTED!!!!!!!!! $$$$s in the Bank!!!!!
New Item - Market Review of US market conducted by third party = GOOD BUSINESS PRACTCIE - Only item of real concern is the "number of manufacturers claim to be close to obtaining FDA approval" - would like more information on this.
Website - launched March 2008.... Launched on time + FAQs section to be added to website for investor's questions (really looking forward to the FAQ section - that way management can get on with the business of running the business instead of answering the same questions continuously)
FDA APPROVALS: *Oraline IV - Study completion put off until Q3/4 09.... Submit new appn Q3 09 when studies completed = ON TARGET *Visualine - FDA Inspections soon....Inspections occurring now = ON TARGET *Bioscreens - JV...has FDA Approval if labelled correctly = EXCELLENT
Shockrounds patent - happy to sell but no expectations.... Had discussions with an interested party but not proceeding due to lack of prototype - no money being spent = UNCHANGED
CAPITAL REQUIREMENTS *FDA Approval Oraline IV - $300k.... Not mentioned *Increase Production Capacity - $500k.... Down $100k to $400k (includes China commercialisation costs) *FDA Approval - Visualine - $85k....Increased $35k to $120k *Extra Lab/Sales Staff....Not mentioned - assumption - hired or in process *Payout $130k - Paice & Andrews.... Completed *Operating Shortfall (No figure mentioned)...Reduced to $400k ($133k pm) (See increased Sales & reducing operating expenses above) *New Item - Commercialisation of Oraline 8 - $100k *Repayment of Dr Sun $225k + $980k in July....$225k paid & may be renegotiating with Dr Sun to defer part payment and part conversion to equity *New Item - FDA GMP - Compliance - $170k
Other items of interest: Creditors reduced from $306k to $226k = GOOD Inventory increased by $55k to $105k = GOOD Debtors as at 31/3 = $225k - (see previous posts by GSW & Others) indication of very good sales in March. No of Oraline units sold = 240% Increase = EXCELLENT ORGANIC GROWTH
So IN SUMMARY:
# We have a company that is being managed efficiently - they say what they do & they do what they say.
# Rapidly increasing sales, (with reducing operating expenses and reducing creditors; and no money spent on marketing/advertising this quarter). The expectation that they will be operationally cash flow positive by next Qtr, but definitely by Sep 08.
# New revolutionally products to be launched within the next four months.
# All projects proceeding either on target or ahead of schedule.
SO COULD SOMEONE PLEASE EXPLAIN THE @#%&ing 43% REDUCTION IN THE SHARE PRICE. I would hate to see what the market does to a really great announcement!!!!!!!
Sorry about that - frustration showing Cheers KM (the female half of the JDKM)
SBN Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
