Ann: Appendix 4C December Quarter 2014, page-39

Hi Imran,

I completed a quick exercise on this stock un-audited.

Including FY2011 until Q1 Fy2015 the company has generated revenues of $48, $3M operating cash flow, and -$1M in free cash flow. Debt has reduce by $1M and cash increased by $0.5M, the balance of this sum has been made up from recent capital raisings.

The company has had three quarters in this period which have produced meaningful FCF i.e. above $700K. Subsequently followed by poor quarters and R&D spend.

I am not convinced that the company has the scale nor the product demand to produce consistent profit.

I appreciate that they are coming to the end of a product update cycle.

What is going to lead to sustained profit from here?