30 June 07 financial report states that VCR has cash reserves at $48,632,000.00.
Net cash flow was approximately $38M. Revenue was 7.4M and Expenses 45.3M. Expenses made up of:
Cost of Goods sold 2.9M Research & development 7.9M Manufacturing & Quality 9.9M Assurance Regulating & Clinical 6.2M Affairs Marketing & Clinical 9.2M Support Mngt& Administration 9.2M
VCR needs to stem the flow of cash for the year ening 30 June 2008. Otherwise, it'll have to raise cash again to continue the research & development as well as the regulating and clinical affairs. These are the two critical areas.
The manufacturing & quality assurance cost will always be cancelled out as long as the sales revenue increases. The latest European approval should help this.
Management and administration costs have to go down. Maybe cut down on director fees and change to milestone bonuses instead.
As each of the required approvals get bedded down, the cost of regulating and clinical affairs will reduce.
I'd love to see VCR turn into another Cochlear and I believe it has the potential to do so. VCR is on the cusp, it just needs the vital U.S. approvals and a stable amount of cash in hand to continue on with the research and devlopment.
Best of luck to all VCR shareholders.
VCR Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
