Ann: Appendix 4C - September 2015, page-4

If the status quo remains , INL will be in chronic cash flow negative condition for the next few quarters.
Simply too many "managers" with an average wage of $120Ks (give or take)...Rodgers , Jones, Cronin,Waring, Pembroke , Wells , Salisbury.....This is roughly $1m going to the "strong" management.....Not to mention other corporate overheads for a listed entity.
50% revenues from SciDev will not sustain the Intec machine for too long....The small cash will will be gradually sucked away.
I have expressed my concerns to Mr Rodgers a while back in an email.
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Dear Kieran,
Thank you for your call yesterday. I sincerely hope we didn't start on the wrong foot, but I have a grim view of Intec's prospects if the status quo remains.
I see serious flaws in the all cash acquisition terms & turning the founders into employees , thus draining our cash reserves & removing the incentive to really achieve.
We ended up with a liability rather than an asset.
But , I do believe that the business has some merits.
Some hard initiatives need to be seriously considered to preserve the little cash we have.
1) Negotiating the employment contracts with Paul Pembroke & Mark Well to align it with performance.
2) Perhaps offering all or part payments in INL scrip instead of cash.
3) John Salisbury hasn't produced any tangible benefit ( another Dave Sammut?)....Does SciDev really need a business development manager. SciDev was doing much better with its prudent two founders. Could Salisbuy's job be adequately performed by Dan Cronin or yourself....One less mouth to feed.
4) I am still not clear whether Dan Cronin & yourself are receiving remuneration from SciDev...I sincerely hope that matter should be clarified in the Annual Report.
5) You, together with Dan Cronin & Trevor Jones may show your interest in preserving cash by accepting all or part of your salaries in scrip instead of cash.
I must stress again that your cost of running such a small business is way too high & unsustainable.
Intec will hit the wall in a couple of quarters if management (both Intec's & SciDev's) don't take the proper measures to trim down cost to bare bones , at least till signs of a turn around are visible.
Regards.
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I will not disclose Kieran's response on a public forum , but needless to say I have not received any satisfactory answer to my main issue of the high cost base of running such a small outfit.
I must say they are working hard , but too many hard working men....And...Expensive ones.
Drastic measures need to be taken.