From the Annual Report: "Material uncertainty regarding...

From the Annual Report:

"Material uncertainty regarding continuation as a going concern. Without qualifying our opinion, we draw attention to Note 1(u) in the financial report which indicates that the consolidated entity incurred a net loss of $4,437,023 during the year ended 30 June 2012 and, had operating cash outflows of $1,767,770. These conditions, along with other matters as set forth in Note 1 (u), indicate the existence of a material uncertainty which may cast significant doubt about the consolidated entity’s ability to continue as a going concern and therefore, the consolidated entity may be unable to realise its assets and discharge its liabilities in the normal course of business, and at the amounts stated in the financial report."

A fair swag of the net loss (50%) was attributable to -

"The Company made a decision to fully impair its Clip-On project totalling $2,777,447 as it has been unable to find a buyer for the project."

In fact EMS wrote off a another large amount the previous year of $1.5M for another impaired intangible.

Having said this I expect that with WestCoast now profitable and PhIII in-country trial costs finished the cash burn rate should be lower next year.

Assuming that WestCoast is in profit then there's still costs associated with:

- the compiling of the medical report
- Therapex manufacture of registration and validation batches
- the registration and validation process

Bottom line (to my mind) it will be very tight if oppies aren't exercised

bluebush