Ann: Quarterly Report and Appendix 4C, page-8

The issue is that they don't have enough capital or debt facility to continue on business while making a loss. A 26% increase on a couple hundred thousand is not really that great when it's still a loss. I get that you're looking for the positives but if you look at cash at bank and the estimated cost for the next quarter it's going to be tight and I'm not sure they will be able to raise capital again as the last raise was just scraped in.

I believe the reason we don't see much communication is because late last year the company were questioned by the ASX for making statements about future revenue predictions which is now not allowed as it could be seen as misleading. This certainly hurt the share price as the company was suspended for a period of time and once reinstated for trading a lot of shareholders bailed.

The company also reported that they had given demonstrations to the Philippines military which has never amounted to anything. The company has been earning between $350-$500k per quarter for a while now and just cannot seem to get passed that revenue barrier and the problem is that costs per quarter are more than $1m so the cash burn vs revenue is really killing the business at this stage.