Ann: Appendix 4C - quarterly, page-8

I did some dirty calculation to alleviate some concerns.

Normally the sales will have some credit periods(in my industry it is usually less than 90 days but more than 30 days). If that pattern holds,this period's sales will mainly generate next period's cash. I dug further to find that March quarter sales were 2.2m, the June quarter cash received is 2.1m;the June quarter sales were 2m,the cash received in September quarter was 1.6m; the September quarter sales were 1.1m, the cash received in December quarter was 1.3m. We can take the generation rate between 0.8-0.9 approximately. Taking into account December's sales reach 2.58m, we should have 2.064-2.322 cash received in ongoing quarter.

As the company reaffirmed that their revenue target at 10.5-11.5m,we take the bottom 10.5.We can get a roughly guess of this ongoing quarter's  and June quarterly sales 6.82 m(10.5-1.1-2.58).The average expection for this ongoing quarter should be 3.9m. If we take into account some increasing trend,we could roughly  take the ongoing quarterly sales would be 3.8m, If the cash generation ration is between 0.8-0.9, the June quarter cash received should be around 3.04-3.42m. If the total sales exceed that bottom 10.5m, it is a happy bonus.That calculation affirms me how undervalued this company is and how the cash positive target in such a performing company is so reachable.

I am confident that the company can deliver.