Ann: Preliminary Final Report, page-41

OK - if we reduced the intangible assets to $0 value...that would put the company (at least on the balance sheet date) only $36,667 away from being insolvent and, as we know, it is illegal to trade whilst insolvent.

With respect Oooger, intangibles most certainly have a value - and particularly those that include patents and goodwill. It is just a question of how that value is derived. Because they are intangible and hard to measure (unlike nice smooth historic cash flow streams), it simply means it is open to broader assumptions (like what are the future growth prospects?).

For example - I once sold a "square wheel" business for about $500k more than its numbers warranted - simply because I agreed to stay involved for a 5 year period after the sale. In the right circumstances, the goodwill factor can be a very powerful valuation driver.

A "circling vulture" potential suitor would predictably argue goodwill is worthless (and that can certainly be arguable) and patents are unproven blah, blah, blah. But when you have patents attached to a scientifically proven winner like Midkine, then you have a valuable commodity to sell.

To me, CDY's core value is its Midkine potential, because it clearly sets us apart from the competition...just ask PEB holders to explain this if you are unsure. If we didn't have the Midkine factor (and its patents), I would never have invested because the Company would have been worthless.

Also, to me, the thing letting down CDY is the way the company is being run - especially financially. I know it needs cash to expand and research etc, but - if I were its CEO - until it's revenue and profitability really got underway properly, I wouldn't be taking the level of remuneration that Maria currently enjoys. Instead, I would be creating a more delicious level of remuneration linked to the performance of the business over time.

I have always believed the employee related benefits in CDY have been too high - in proportion to its business performance. If all employees are rowing the company to the same course, then I would expect them to understand this concept.

Ooops - too long winded, sorry.