Now I’ve had a moment to digest this HY report, let’s look at...

Now I’ve had a moment to digest this HY report, let’s look at the positives.

• The restructuring is complete at last. The company now has the directors and staff in place to execute the new strategy to grow the business.
• The company has achieved actual sales of $4,710 over the 6 months, with another $21,700 in trade receivables. This is definitely a step in the right direction, although off-set a bit by trade liabilities of $4.6m.
• Business development and marketing costs have been slashed by 87%. This must indicate that the new distribution strategy is far more cost efficient than the previous model.
• Admin, office and corporate costs have tripled – a sign that the company is gearing up for some big things ahead.
• There is $794,000 in the bank to keep the business going, provided by some sophisticated investors. QMAC loan is also there, ready to be tapped in case the burn rate is more than the directors anticipate.
• Mr Tsiolis is happy to take his $1.278m in advisory and capital raising fees as shares and options, a vote of confidence in the business.
• While the auditors noticed the company incurred a loss of $5.7m, had $2.47m in net outflows from operating activities, a $2.1m working capital deficiency, and there is a significant doubt about the group's ability to continue as a going concern, NET’s directors have been able to provide no less than 11 reasons why this was not a worry.

All seems set to crack the China market big time. The days of waiting for the turnaround must nearly be over. Watch the SP soar and Brett64 rake in the beer.