I'm happy to become a shareholder as of this morning although it...

I'm happy to become a shareholder as of this morning although it is only a small amount. I have had reservations for some time about investing because of the the long lead times involved in testing through to final sales. It feels as though momentum is building but probably not as quickly as most shareholders would like.

Today's 4C for the first quarter would have looked very ugly if it wasn't for the government grant money. The German deal announced today will help the 2nd quarter cashflow report look a little healthier. However I think it is fair to say the company will lose money in the first half and be cashflow negative, but I don't mind as long as the momentum continues to build into the second half.

I like the fact that the company gave some fairly specific revenue targets for reaching a cashflow positive state ($4m) and profitability ($5m) in the annual report.

Some back of the envelope calculations. in FY2010 the company managed $1.6m in revenue (excluding grants) on sales of 700 tonnes. The company is forecasting between 1500 and 2000 tonnes this financial year. Take the midpoint of that range gives approx $4m in revenue for this year. Throw in the govt grants and you've got a cashflow positive year this year but still not profitable. Again I'll take that as long as the momentum continues to build.