Ann: June Quarterly Activities Report, page-18

@skyscraper99. I've followed your posts on CFO for a few years now and have often found them informative. I also understand your growing impatience and cynicism (as does @Captain Blood), but I can't agree with your comments here though, as the update signals very significant progress in the quarter.

On the issue of customer commitment and production, CFO clearly state they have around US$450k in open orders for CF30 CFOAM (i.e. commercial orders waiting to be filled). This supports management's claim that the key obstacle to sales and revenue growth is supply.

On the inventory issue, in the recent update CFO flagged that delays in production of CF30 (high density CFOAM) were due to quality issues with feedstock. This issue has been decisively addressed by contracting a new supplier and by CFO taking control of all aspects of feedstock preparation (i.e. the coal pulverising process). These improvements have been assisted by our new Technical Development Director, Dr Rudy Olson.

CFO also indicated they've got a sales pipeline for the CF25 inventory, which represents $1.5M in stock that will be sold in the coming quarter(s). This includes the US Navy trial order. Finally, they do address the issue of reduced sales in the quarter in the update.

Anyone wondering why they still hold CFO, or if they should buy (or sell), would do well to read (or re-read) the latest update. It makes clear the challenges of manufacturing high-end materials (i.e. the development pathway includes commercial manufacturing), but also the quality of the current management team and the potential the company has going forward. All IMO. GLTAH R-7