“I am a little astounded by the fact that, in Q4 report, it mentioned that expenses were high because of forward-purchasing raw materials, which will unwind in upcoming quarters. Isn't that what KTD said in the last quarter(s)?”
No. They had a build up of inventory in Q1 (June 2020). This did then unwind over the following two quarters with cash burn dropping significantly to $700k (Q2 Sept 2020) and $100k (Q3 Dec 2020).
Not sure what you are implying, but I don’t think they would just be making this up. In fact, they can’t - this would constitute a misleading statement to the market which is not favourably looked upon. In addition, they wouldn’t make it up when it’s not difficult to check this when the raw materials inventory figure is released on the Annual report in a few weeks time!!
KTD Price at posting:
16.0¢ Sentiment: Hold Disclosure: Held
