You know I love being a contrarian Choco so try this one for...

You know I love being a contrarian Choco so try this one for size.

Steve doesn’t make misleading statements - all he does is set things up to enable you guys to fool yourselves.

Strides pay $400k upfront. Another $600k is due on meeting milestones including the successful completion of the first pilot in-man test.

The total cost of the project is estimated at $4.5m. So where is the other $3.5m? Well the total includes the cost of the clinical trials.

The clinical trials will be conducted by a group like Linear. Linear will invoice SUD and SUD will get the money from Strides.

If they ever in fact get that far; SUD has to produce positive results from the first pilot in-man test. If it doesn’t it will lose the money from the cost of that of that first trial and there will be no anything.

Now if anyone wants to say well what does this work out to per month go right ahead and say $170k a month. Its true. But it doesn’t mean SUD get $170k a month each month every month. And nor does it mean this is actually profit of anything. The bulk of the money goes straight to Linear.

But by suggesting the $170k a month idea … you guys all fool yourselves into thinking that SUD is now making money.

So it is very clever; like a good magician Steve knows exactly how to get you to look in the wrong place.

Where everyone should be looking is whether SUD have got the formulation working on the benchtop, have they done any animal studies and when is the date for when that first pilot in-man trial.

Given the lack of specificity about progress on this in the announcements the suspicion is that have got nowhere – but no one would ever notice because everyone is trying to work where the $170k disappeared to.