Sales still not taking off despite the hopes of shareholders...

Sales still not taking off despite the hopes of shareholders that Germany FiT and UK free BG would increase sales, I was right to doubt that. Still a cottage industry then.

Cash position at 30 September 2013 AUD 4.1m (GBP 2.5m)

Net operating cash outflow for the September quarter was AUD 5.8m (GBP 3.5m)

"The Company lodged its tax return for FY2013 in early October 2013 which included circa $4m (GBP 2.4m) of research and development activities for which it expects to receive a tax credit and resultant refund. Indications are that it will receive this refund in November."

"In its Annual Report, the Company advised shareholders that it would maintain a focus on fundraising and strong cash management. It also stated that in order to meet its sales targets and to continue with its research and product development programme, a capital raising will be necessary."


I said fund raising would be required at this time, way before CFU posted it's annual report, and I am right yet again.

3.5m burn / 13 week in the quarter = 269,230 per week

2.5m / 269,230 = 9 weeks of cash left since end of September, at the end of this week that leaves CFU with enough cash for just 4 weeks running!!

Add 2.4m of tax refund would give them around 13 weeks of cash from end of this week, but IMVHO they would be crazy to rely on the tax refund coming in during November as cash could easily run out before the tax refund arrives, therefore I would expect fund raising to happen within two weeks, probably within one week. Loan extension or placing this time is the question?