questions to geoff, page-9

Goldie,

Glad to hear you're finally on board as a true-believer investor, and will be holding onto your TZ shares until the sweet end (hopefully without an FA after it).

Apologies, I got carried away with the $1M, it was actually $880,000. See September Quarter 2011 Shareholder update, which when paraphrased says "we had a brilliant quarter, the cash flow would have been great, except it wasn't, because was more negative than it would have been due to a couple of largeish bills which came in".

These bills must have been unexpected, as there had been no prior disclosure to the market that cash flow would be materially impacted and worse than had been foreshadowed, due to these pending payments. It was used as the excuse for cash flow being worse than had been forshadowed a while ago - break-even in 2011, I recall?

Further down in the report:

"It is expected that ... there will be a cash flow improvement for the consolidated entity in the December Quarter"

THERE HAD BETTER BE OR THE COMPANY WILL BE INSOLVENT EARLY IN 2012

From the Appendix 4C - September Quarter 2011

Cash flow for quarter $-2,846,000
Cash remaining at end of quarter $3,483,000

I'm sure you can do the arithmetic.

Funny, few who are active on this forum seem concerned about this sort of thing. It reminds me of Mr Grace in the Grace Bros sitcom - where he toddles in and says to the staff "You'e all doing very well" whilst everything around him is going to hell in a hand basket.

Any accountants out there - how should the AUD$660,000 withholding from QVT interest have been treated in the FY10/11 and ealier FY accounts - as a current liability? And as this was for "previous fianncial years", why did this amount fall due for payment only in the Sep quarter 2011? Did someone at TZ get caught with their pants down? Were there ATO penalties involved?