Ann: Appendix 4C - Q2 FY15, page-2

They have not reduced their cash burn as much as I would have liked this quarter but it should fall next quarter given this quarter includes redundancy payments (of about $500K) which should reduce the ongoing salaries bill (by about $400K) which should result in lower burn by about $900K versus this quarter - to about $2.2m per quarter with cash on hand of $6.7m. The good news is that cash receipts held - I thought they might have fallen given the atrocious (and in my view largely unfair) publicity. The bottom line is they need to drive commercialisation of their pipeline quickly. They are line ball at the moment on whether they will need to do another CR in the next two quarters - the position in the third quarter should be alleviated somewhat by another substantial tax refund ($3.7m in FY14, $2.3m in FY13) but that could only push it out by a quarter. Existing shareholders definitely don't want another capital raising at the current share price. All IMHO and DYOR