CM8 Is it ready to take off?, page-3

There are a couple of items that will positively contribute to the bottom line of FY18 in addition to amortization.

By my numbers we will have a $1.1m reduction of amortization costs in FY18 compared to FY17.
Provided vendor debt is extinguished in Oct 18, and JGB con note paid down as stated, we will have $1m reduction in interest costs in FY18, in addition to the $340K reduction in interest exp in 2HFY17 due to reduced JGB loan.

However the company needs to continue growing QA, and start growing the subscription business. Hopefully they don't over committ to China etc without seeing results as the last thing we want is to burn too much cash unneccessarily, especially over the next 18 months. If this happens, then there is plenty of upside from here. If they can't execute on this, then forget about it.

If i recall correctly, there is also a whole heap of options, exercisable at 25c-30c expiring from March - October 2018. It's obvsiouly a large if, but if the price is north of that, it will provide the company with a nice injection ($5-$6m) of cash which can be used to knock off the vendor debt.

Execution over the next 12 months will be telling. Fingers crossed for all holder it goes to plan.