Ann: Presentation to ASX Small and Mid-Cap Conference, page-8

I'm new to this stock - so apologies in advance if this has already been covered previously.

Working capital management does concern me particularly AR ($15m) & stock levels ($9m) at 30 June 2020. The AR balance at 30 June 2020 is over 4 months sales unpaid and last year it was closer to 6 months unpaid - I understood the customer base was mainly Government so does anyone have any info on why these customers are so slow paying? And roughly enough stock at 30 June 2020 to support 4 months forward sales?

I want to like this company. I like the tech. But is the finance function being properly managed? Is too much credit being extended to customers? It's an admirable target of $100m in sales, however, this will need a great deal more of capital if AR & stock levels run at similar multiples to the current level. Certainly some additional funding will come from credit provided by suppliers (and hopefully some profit) - but will another $20m or so be required in working capital if sales expand by a multiple of 2.5 - and how many CR will SH be looking at along the way.

I would be grateful for any other views on this.