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Remember suppliers are  your cheapest form of financing. For a while at least until they get pushed into a corner and get very shirrtty...if your expected cash flow timings don't happen as envisaged (hoped for), unfortunately you need to at some point pay the suppliers.

Just because the business may be swimming in cash in the future doesn't give management a right/excuse to be extremely mediocre in handling the obligations of today and hope that everyone will just forget about it because it is a relatively small number in the scheme of things...with zero production de-risked, in today's terms that may turn out to be a big number. That's a (absolute) sizable chunk of shareholders future profits they've gifted away for a paltry 800k...