Some Questions

The results announcement raises a number of interesting questions:

1. Why did the company not disclose payments totalling $342,375 in the FY11 and FY12 years to Cresta Motor Yachts, a company owned by Adrian Ballintine, as required by the Corporations Law?

2. The rationale for this expense is described as "executive marketing and business development". If it is correct that Cresta does not hire its boats out, what was the nature of the services provided? For whom and when were these services provided? Was this tendered to other service providers?

3. Why did the company make payments totalling $357,500 in FY12 and FY13 on behalf of Adrian Ballintine?

4. Why did the company allocate these payments to the Jabiru project, rather than to the account of Adrian Ballintine?

5. To whom were these payments made?

6. This amount is now recognised as a receivable in the 30 June 2014 accounts. Given the company appeared to have run out of money and required a loan from its major shareholder, has Adrian Ballintine repaid this amount to the company yet?

7. The company has 30 days to raise $20 million and three months to raise a further $20 million or it will be in breach of the new requirements put in place by the lenders. What is the consequence of such a breach?

8. The company recognises as a contingent liability a potential claim from an employee relating to its failure to seek shareholder approval with respect to an agreed issue of performance rights. It confirms the involvement of legal counsel. As this is a current employee and shareholder approval is required to issue the rights, then an understanding of the corporations law suggests this individual is a director. There is only one director that is an employee. Is Adrian Ballintine suing the company for additional performance rights? If so, would not the company be obliged to advise the ASX, outlining the details and its position?

9. The company recognises as a contingent liability a settlement of 2,500,000 shares to AP Kypros. Although it does not elaborate, this relates to the orbital slots. Can the company provide a statement to the ASX as to whether these slots still exist, when they will expire, what the company's obligations are to retain them etc?