A few facts to keep in mind: - PLT burned $4.1m in operating...

A few facts to keep in mind:

- PLT burned $4.1m in operating cashflow for the half year to Dec 2008.[This may have come back a bit with improved sales performance in second half - I don't have a sophisticated view]

- PLT ended the half year (Dec 08) with $2 million of payables and less than $900k cash. To me, $2 mill of payables looks like an unsustainably high figure for PLT and implies that they must be paying a bunch of suppliers VERY VERY LATE.

Since Dec 08 they have raised $1.136 million (notes) and $2.25 million (SPP).

Unless they have managed to significantly reduce the burn rate the balance sheet is going to look even worse at June 2009 than it did at December 2008.

IF they can get the sales to start ticking up then the convertible note guys will convert to equity, reducing a little the future equity need.

However, if PLT were still to be burning cash at the rate of $4 million per half year come, say, November 2009 then there would most likely be a requirement to pay out the notes - $2.3 million - as well as raising sufficient funds to get the company through the next time period.

Once again - I know that TTH will be angry with me for saying this - but I reckon that the facts speak for themselves. PLT needs to raise money VERY VERY SOON if it does not get the FER deal done.

All that is in question is the size of the raising required. If sales are about to take off they might get by with only a couple of million dollars.

If sales are not about to take off. . . . .the ask to get through the next 12 months could be as high as $10 million.

Do they have enough friends left in the capital markets?

Is insolvency a possibility?