Ann: 2011 Annual Report , page-5

Not Good !!! need nothing short of a miracle to save them this time.



Going Concern
The consolidated entity has incurred operating losses of $953,370 (2010: $1,483,500) and negative operating
cash flows of $665,599 (2010: $1,651,617) for the year ended 30 June 2011.
The financial statements have been prepared on the basis of going concern which contemplates continuity of
normal business activities and the realisation of assets and settlement of liabilities in the ordinary course of
business. The Directors consider this to be appropriate for the following reasons:
• the ability to vary the consolidated entity’s cost structure and in turn the levels of cash burn dependent
on the level of achievement of certain milestones within the business plan;
• the demonstrated ability to obtain funding through equity issues as required; and
• the expenditure commitments are at the discretion of the Company. The Company will assess its cash
position at the time of the commitment.


The Directors recognise the above factors represent create some uncertainty as the Company’s ability to
continue as a going concern and whether it will realise its assets and extinguish its liabilities in the normal
course of business and at the amounts state in the financial report.
However, by taking into account the points
noted above, the Directors are confident the Company has adequate resources to continue in operational
existence for the foreseeable future.