As the exposure of RAC grows with new investors, I thought it...

As the exposure of RAC grows with new investors, I thought it would be useful to put together a resource for a cash flow forecast for the company. When investing in new biotech companies, cashflow management and whether or not the company will have enough money to run trials are often unknowns. Race has historically shown strong cashflow management.

Common questions when investing in biotechs
- Will this company need to raise capital again? Causing futher dilution to my position or need to go to the debt market
- How long is our current runway and will that be sufficient to see through the programs
- Specifically to RAC, will we have enough funds to execute on the share buy back and the planned trials at the same time

***Note, I am not associated with Race. I am simply a long investor. This has been put together with my assumuptions. Many assumptions will turn out to be incorrect and should be not relied upon***

I have put together this tool as a visual aid for where Race might be in terms of cash position over the next 24 months. This is draft only, I will update figures on this post as they become more clear over time. If you have any suggestions or want to change an assumption, I will come back and update. There is also space for future income.

Assumptions/Workings

Opening Cash Balance

At end of June. $33.5 million, assume opening balance for 1^st October $30m. Will update once Sep report released.

Cash Receipts

Interest Income

Balance of Term Deposits FY 2020 - $27.5m, due to increase in RBA cash rate assume increase in TB/Savings rate on cash on hand. Assume conservative 2% interest on opening balance. Calculates interest expense if negative balance.

R&D Tax Incentive

R&D Cash Spent FY2022 – $5,831,954. Assume refund received in March Quarter (2021 received Jan 2021)

March 2024 refund – R&D Outlay of estimated $2m P/Q - $8m annual. Assume 40% refund from ATO. $3.2m refund

Cash Payments

Research and Development

March 22 - $1.7m, June 22 - $1.3m. Assume ramp up of trial activity as announced as part of strategy. Assume $2m outland until June 2023 and ramp to $3m per quarter.

Product Manufacturing

March 22 - $116k, June 22 - $494k. Assume $750k per quarter as manufacturing costs increase due to expansion of programs.

Advertising and Marketing

Assume significant increase in expense on advertising. $500k per quarter (Spent $209k for full FY2022)

Staff Costs

March 22 - $122k, June $139k. Assume $200k in staff costs for the rent of FY, increases as headcount increases. Need clarity on where current director costs are allocated.

Administration and corporate costs

Dr Tillett - $300k, Mr Lynch - $300k (from 1 April 2022). Mr Fuller $345k. Mr Cullity $120k. Ms Harney $48k. Add 10% Superannuation.

Dr Breitenbucher joins SAB in May 2022.

Per June report - $43k payment for non-executive director fees, $165k payment for executive directors (including superannuation). Assume $250k for each quarter.

Assume $50k each quarter – for Ms Manfre, PKF CFO Role and other corporate costs.

Share Buy Back (BB)

Per (@dangkhaut) post to end of September Quarter – share BB of circa 600k shares. Or $1.2m in value.

Assume accelerated BB activity as SP appreciates. BB program expires maximum 09.06.2023 (June 2023 Quarter)

Dec – 600k Shares @ $2.5

March – 1m Shares @ $3

June – 1m Shares @ $4

Total buy back of 3.2m shares