First quarter 2014

The first quarter appears to show a steady course on the good ship Biota.

The loss of just under 4 million is essentially the cost of ongoing research programs, and those have reduced recently so I'd expect to see that figure drop a little further in the future.

BARDA pays for itself and almost all of Biota's general and administrative costs from the margin. As the BARDA contract spends more, there will be more paid in the 7% margin so the next year should see revenue increase.

I voted against the increased allocation to the Equity and Incentive Plan. I don't think it should have been put to us at this stage, even if I think the current management is better than the previous management.

The initial incentives offered as part of the current executive reimbursement are generous but reasonable in the context of the task ahead. But the Board should have delivered some gains for shareholders before asking shareholders to extend the Equity Incentives, especially with the proposed significant increase in the shares of the company. There hasn't been any traction in shareprice or even turnover as yet, so I think it's not the right time to dilute the capital of the company.

Speaking of shareprice, it has drifted lower again. The Enterprise Value of BOTA is under well 60 million.