Ann: Appendix 4C - quarterly, page-36

Interesting product manufacturing cost comparison between:
a) this quarter against the full year
b) this quarter against the forecast for the next quarter

Especially when you work out a crude gross margin % by applying manufacturing costs against receipts.
For the first 9 months of the year (by my crude calculation) it appears the average margin was around 24%, yet for this last quarter it was  -18%

	Column 1	Column 2	Column 3	Column 4
0		Jun Qtr	Full Year	9 Mths
1	Receipts	2545	15969	13424
2	Product Manuf	3010	13186	10176
3	Margin	-465	2783	3248
4	Margin %	-18%	17%	24%

I'd say that there is a "timing" difference in inventory purchases and that is partly why manufacturing costs are forecast to be so low next quarter and why things look abit worse this quarter than perhaps what they really are.

Also with forecast outflows next quarter to be only $2.289m - if they only do the same level of receipts next quarter as they did for this quarter ($2.5m) then they would be cash flow positive.

Maybe they are clearing the dirty laundry and setting themselves up for a better 2018/19 year starting with the September 4C.....