The long wait, page-19

Cash flow positive...a galaxy far far away. But apparently we can be in 12 months if we want to?!

Russell Sean (ph): First question. I’m sorry, Russell Sean, shareholder. What is your projected breakeven figure, cash-wise?
Alan Shortall: I—we’re not in a position to give guidance, but I will refer you to what our operational expenditure was in the last year. We’ve just said during my presentation we don’t expect much increase in R&D. We’re controlling our SG&A costs, so I don’t see it changing much. So you can work it out yourself, and if you work it out and work out in the numbers that I’ve just provided to you, you can see that we’ve got an amazing opportunity in front of us.
Russell Sean: Yes, but what—I suppose, the reason I asked the question was working it out myself, on Monday night, you talked about breaking even in three to five years. I’m not sure. Are you going on holidays in the meantime?
Alan Shortall: No, no, no, but let me qualify that. This is one—this is the point I made today. We can go cash flow positive—cash flow positive is not the issue. We can go cash flow positive in the next 12 months if we wish. The comment that you’re referring to was made on the basis of our strategy; this is a strategy. Our strategy is to continue capitalize on the unique opportunity that we’ve created. Whilst we’re locking out our competition with 10 and 15-year supply agreements, locking down recurring revenue for 10 and 15 years, as

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those opportunities come, we will invest back in the business and build shareholder value as we see that fit. Automatically, we’re going to go cash flow positive, but that’s a choice we’ll make on the way through. That comment you were saying—that you’re talking about was actually made in the context of that strategy.
Russell Sean: Yes, but even still at the figures—if you continue at your current strategy, which is investing in R&D, at your current figures, you still should be cash breakeven well before three years’ time.
Alan Shortall: I think—I’m not prepared to (inaudible)—I’m not prepared to give you guidance. I’ve given you more than enough information that you could make a very, very informed decision on the basis of the information I have already provided to you.