Ann: Appendix 4C - quarterly, page-2

So i have been doing some calcs. Cash in bank was reported at $2.825. Expenditure is expected at $2.965 as per 4c. My estimate is $770k in from customers. R&d grant of $1.6 as per oct 31 announcement. This gives cash at end of the qtr of $2.180.

Next qtr i expect cash in of $1 mill less cost of $2.965 ( held constant) giving cash of $215,000 at end of march. So we would normally expect a capital raise. However we have 3 sets of options expiring in the march qtr. 2 mill @.6 (27 jan) and another 2. 175 mill @ .25 ( 31 march) and a small one of 100,000 @.75. Assuming they are exercised that give an additional $1.82 million or cash of $2.03 mil.

Given cash receipts of $1.3 (my estimate), we can go without a capital raise through the june qtr. But a lot rests on the exercise of options, particularly that 2 million @ $0.6.

Will we see a pump? Hard to say. I don't know who owns the options. Probably the ceo and he won't fall for it.

So the tough question is when for the capital raise and how much? Or even should it be feared given dubbers historic capital raise performance?