Replies to post #241022 on Innovation Pharmaceuticals Inc (IPIX)

[DaubersUP]

Right. I went thru older Qs and Ks and it differs each time. The previous Q was 2 million owed to CRO. So it looks like 2 more was added. So we have paid 4.1 million thru June 30th on p for the year. So now we owe 4 more making it an 8 million investment for the year? Sounds like we dropped our drawers using this CRO. IMO.

[frrol]

It's tough to infer from, because these contracts get "expensed" as the work is done, and we announced back on June 29 that the database was locked. This means the major lifting by the CRO was completed. The subsequent remaining analysis work by the CRO is of course not cheap or easy, but it is not likely $4MM and we would not need just "another $2MM" (announced June 29) to pay for it.

This is all so puzzling. I think our management figured we could give another $1-2 million or so to the CRO and get the results, and the CRO dropped another big bill on us (sometime after June 30) and said "you need to give us another $X million before we release the results" and we're stuck with not having enough cash. The CRO for some reason believes they aren't going to be fully paid. I'd like to think it's because of the bad contractual $ estimates and our trial delay concerns, and not because the results are poor. I'll tell you one thing: it's good to know the trial is done and the data exists. I wouldn't want to contemplate the alternative. I'm already struggling to complicate this mess as it is.

[wsbc]

My understanding was the total amount to get Prur out-of-hoc and to receive complete results was $8M.
That was as of end of winter (Feb) or so.

My guess is that outstanding $4M represents the 50% of the unpaid amount the CRO is still owed.

ffrol,
What do you make of this sentence on page 69 of 10K:
"The Company has total non-cancelable contractual minimum commitments of approximately $4 million to contract research organizations as of June 30, 2018."