The net operating cashflow for the quarter resulted in a cash outflow of A$2.60 million which was an improvement from the two previous quarters due to increased receipts from customers, the company said.

During the period the Company completed a placement of 175 million ordinary shares to U.K. and European institutional investors, raising A$87.5 million (GBP37.2 million). In addition to this, 7.7 million shares were placed to existing shareholders raising a further A$3.867 million. The Company's shares were admitted to trading on the AIM Market of the London Stock Exchange and commenced trading on Mar. 2. Expenses of A$6.382 million in relation to these two placements were paid during the period.

The company said that receipts from customers during the quarter were A$0.765 million and relate principally to the Company's field trial programme of its Combined Heat and Power (CHP) demonstration units. The Company expects to receive further revenues from these trials with its utility and other partners and intends to deploy its new NetGen demonstration units in field trials during this year.

The company is continuing to develop and commercialise its fuel cell technology and these activities resulted in a net operating cash outflow for the quarter of A$2.60 million.

During the period the Company said that it made interest payments on its convertible notes of A$0.159 million and notes with a face value of A$2.8 million were converted to equity. The Company has issued a notice of redemption to the holders of the outstanding convertible notes and will repay all notes still outstanding as at Jun. 9. The face value of notes outstanding as at Apr. 24, is A$3.830 million 

The net cash inflow for the quarter was A$82.020m principally arising from financing activities. The net operating cashflow for the quarter resulted in a cash outflow of A$2.60m which was an improvement from the two previous quarters due to increased receipts from customers.  During the quarter the Company issued 175m ordinary shares to UK and European institutional investors, raising A$87.5m (£37.2m). In addition to this, 7.7m shares were placed to existing shareholders raising a further A$3.867m. The Company's shares were admitted to trading on the AIM Market of the London Stock Exchange on 2 March 2006. 

Receipts from customers during the quarter were A$0.765m and relate principally to the Company's field trial programme of its Combined Heat and Power (CHP) demonstration units. The Company expects to receive further revenues from these trials with its utility and other partners and intends to deploy its new NetGen demonstration units in field trials during 2006.  The company is continuing to develop and commercialise its fuel cell technology and these activities resulted in a net operating cash outflow for the quarter of A$2.60m.

During the quarter the Company made interest payments on its convertible notes of A$0.159m and notes with a face value of A$2.8m were converted to equity. The Company has issued a notice of redemption to the holders of the outstanding convertible notes and will repay all notes still outstanding as at 9 June 2006. The face value of notes outstanding as at 24 April 2006 is A$3.830m.  
 

The Company's cash position at the end of the quarter was A$89.342m.