Ann: October Operational Update, page-264

Getready,

from the last 4C they estimated this quarter costs:

Estimated cash outflows for next quarter $A’000 9.1 Research and development - 9.2 Product manufacturing and operating costs 4,088 9.3 Advertising and marketing 27 9.4 Leased assets - 9.5 Staff costs 755 9.6 Administration and corporate costs 439 9.7 Other (provide details if material) - 9.8 Total estimated cash outflows 5309

They received 4m, so we can assume they will receive 4m at least this quarter as well.

Now if they stopped converting and would just continue to bill they should save at least 2.5m per quarter, hence 10m per annum. Unless the 4m receipt is the base they get 17 % from, but then they would sit on a huge quarterly loss which LPE is not.

1. Cash flows from operating activities 4,003 4,003 1.1 Receipts from customers 1.2 Payments for - - (a) research and development (b) product manufacturing and operating costs (2,646) (2,646) (c) advertising and marketing (38) (38) (d) leased assets - - (e) staff costs (735) (735) (f) administration, corporate costs & GST (843) (843) 1.3 Dividends received (see note 3) - - 1.4 Interest received 15 15 1.5 Interest and other costs of finance paid (41) (41) 1.6 Income taxes paid - - 1.7 Government grants and tax incentives - - 1.8 Other (provide details if material) - - 1.9 Net cash from / (used in) operating activities (285) (285)

But I am not an expert, I am sure you can show me where my mistake is.