I tried to work out if BOS needed the cash from the Rights...

I tried to work out if BOS needed the cash from the Rights Issue…

From the OIS, with grants but excluding equity raisings BOS seems to have a cash burn of about $120,000 per month.

31 Dec 05 BOS had $2,894,619 in cash. (with current liabilities of $604,858)
At 31 Mar 06 they had $2,586,704.

By Jun 06 they may have about $2.2m cash.

If you allow a similar level of current liabilities of $0.6m that would leave about $1.6m in the bank.

So, rough as guts, BOS has $1.6m and is raising another $2.9m. (Well that’s my calc’s anyway).

Even though someone could argue $1.6m is enough for 13 months spending $120k per month I feel it is not that much to have in the kitty when taking on product development and patenting on a world scale.

I did strike me as opportunistic that this rights issue raises the extra $2.3m needed to reach the aggregate amount of $5m required in a financial year to secure the Class A performance shares. I would like to know BOS’s view. Am I missing something? I hope BOS could be as accommodating on my BOSOA oppies come Dec 06.

Anyway, without these guys there would not be a company and all indications are that they are succeeding and making increasingly rapid progress. I am nervous at the apparent bending of the rules, but I don’t mind seeing hard work rewarded. Perhaps they set their sights a little too high – it would be a shame for them to loose too heavily by it.

Even with the right issue, maybe BOS could have kept quiet and waited to see if it could score a lump sum payment of $1.5m before the performance shares finish on 1 April 07, thereby securing the performance shares by an alternate milestone. If that didn’t happen then they could have used the $5m in a financial year milestone. At least they were up front by mentioning it in the OIS.

Reading between the lines it would seem the animal trials for the contact lens are successful. Allowing several weeks for the human overnight trails to finish by end Jun 06 suggests we will get an announcement on the animal trials in the next week or so.

You know for my money, contact lenses are a handy thing, but if BOS could treat those poor blighters, particularly the kids, with Cystic Fibrosis BOS would be a blessing to this world.

Let us know if you get a reply from BOS on the performance shares.