quarterly results

The EGM presentation release 11/4 stated cash burn rate of $130k per month. The quarterly does not come anywhere close to this figure. Without the R&D incentive of $388k this quarter, they burnt away over $900k.

OVER $900,000. For what?

They sold 360 units totalling $9k for 3 months. Average this out over 12 weeks and we have a grand total of 30 units per week. Not even 5 packs a day.

In the half yearly report dated 27/2, "The company recorded approximately $7,000 in sales for the three weeks to December 31, 2013."

So in 3 weeks, they managed to do $7k (averaging 90+ per week) and in 12 weeks, they did $9k (30 per week). Less than a third of the sales per week after huge marketing campaigns costing us hundreds of thousands of dollars.

To summarise, they spent well over half a million dollars to achieve a significantly worse result. Then to rub salt in the wound, they thought this performance was so stellar that they decided to have bonuses of 10 million options each. Wonderful.

Staff costs have also doubled in a quarter up to $275k from $139k in Dec. Extrapolated, over a million a year alone in salaries to people shifting roughly 4 packs a day.

To say their performance is lacklustre bordering on pathetic would be too much praise. I would hazard a guess to say they couldn't sell water in the middle of the desert.