XPE Lounge, page-2909

JCT sales partners have minimum sales targets. It doesn't mean they will hit the targets or they have placed advanced orders. Advanced orders would have shown as revenue in the half yearly. The announcement you are quoting falls within the latest half yearly. If orders are made, they may not show up in the Quarterlies due to them being an accrual and not necessarily a cash flow item. However, cash spent on manufacturing costs will be reported in the Quarterlies.

If $1+m inventory build-up in the period ending 31/12/16 does not translate into significant cash receipts in the period ending 31/3/17, then XPE will have a poor cash conversion cycle. This will mean XPE has poorly allocated capital. This is immutable; despite announcements declaring sales targets. I remember sales targets announced in 2015 claiming revenue to be generated in the core technology [pre-JCT acquisition] in June/July 2016.

Athan is Executive Chairman and the highest paid employee. His bio is the only one to mention expertise in capital management, logistics and manufacturing. Imo, Athan has already failed in 1 part of capital management, capital raising. The jury is still out on whether he has failed at the other part of capital management, capital allocation. We get insights this week.

At the time when we were asked to approve incentives for Athan, I made the point that the greatest incentive for him to perform is keeping his massive salary. So perform or you are out. Business is business and no amount of "hard work behind the scenes" will make up for poor decision making. SP 6.2c prior to his ascension to Executive Chairman.