Ann: Litigation Update - Yowie Prevails at Trial-YOW.AX, page-42

In response to your first question, I think that Yowie was running hot until the change in capsule, and manufacturer was announced. Although this is now endorsed as the right decision in the long term, the market hates uncertainty, and the complete change over to a new manufacturer brought uncertainty. As did the realisation that there are alternatives to Whetstones patent as Yowie themselves demonstrated by inventing their own and ridding themselves of the high patent fees they had previously been paying. I think that the realisation that a dedicated company could therefore possibly enter the same space as Yowie, caused concern, as many were under the impression that there was no option other than the one existing (Whetstone) patent that Yowie had exclusive rights to. We had some discussions on this forum about that, and it is clear that any candy company, especially ones like Kinder who operate in this space, knew full well that you can get around the patent, but have never wished to. Yowie has a significant first mover advantage and no significant competition has yet surfaced all these years they have been operating. There are some comparable candy types, but not a chocolate egg with enclosed toy. Choco treasure is one, but was sued and settled a case brought by Yowie/ACC and there are some revenues (around $20,000 from memory) on the quarterlies which I put down to those royalties. Then there is the overhanging spectre of litigation between ACC and Yowie over the wrapper, the patent, and the change in manufacturer...
Although Yow had 2 cash flow positive quarters, last quarter showed a loss and I also think investors are becoming frustrated with high executive salaries and expansion of the executive workforce but seeing no real progress in terms of international expansion, or palpable progress in other non-confectionary Yowie products.
Thankfully, sales this present quarter appears to be going exceptionally well, so hopefully the next quarterly reinvigorates faith in the companies performance.