OBJ released their Quarterly Report to 31 December 2011 and as per their previous reports they provided zero commentary. This is something that I plan to raise with the management team. I understand that they operate under a number of confidentiality agreements but a couple of paragraphs on what the company has done throughout the quarter would not be too hard to put together in my opinion.
Anyway, the main information to come out of the quarterly was that cash burn remains extremely low with a net cash decrease of $258,000 in the quarter. Now this is important on two fronts. Firstly it indicates that our internal pain patch development program is not requiring a significant amount of cash and suggests that their A. OBJ is utilising research provided by one of our partners to further their own efforts or B. that this project is in some way funded or supported by someone else even though OBJ call it an “internal” program. The only other option is that very little work is being carried out in this area. This would however contradict the purpose of the program which is to push the project through at a faster rate.
The second important impact of this low cash burn is that the company remains well funded for another couple of years. The cash at the end of the quarter was $3,959,000.
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