Wang Gand - Pudu, page-101

@Abdi70

When assessing a companies debt position and its ability to service such debt due to one of its largest customers going into liquidation:

1. Why would I use note 6, and add that to assets, when its a deposit that a client/customer or clients/customers have already paid? Meaning its included in assets, and after recieveng such deposit, RFT has cash of just AUD $4.19 million remaining.

2. I used the figure of total liabilities because when i want to know a companies liabilities, of course, ill look at all liabilities. Not just cherry pick what suits whatever or whoevers agenda.

However, more specifically I am concerned about "trade and other payables" (which means none of the amount has been paid yet) of more than AUD $11 millon - compared to the companies cash position of AUD $4.19 million.

I'll add, when a company has a customer like tritium which has generated around 50% of its income/contracted/expected income within the last year or two, it becomes very dangerous to count anything the company hasn't actually recieved such as trades & other receivables as an asset. Obviously, they may never recieve it.

From my calculations, based on previous contract announcements and the companies reported financials, pretty much all of the inventories amount is for servicing the Tritium and Icharging contracts. However I admit that I can never tell what portion of those inventories was supposed to be for the liquidated Tritium v the still operating ICharging. But, as shown in the extract from the report (above) we can clearly see RFT emphasised that Tritiums contracted orders were still open (meaning not delivered) and Tritium were delaying taking them up. They state "we are ensuring that the current open orders on this product are being honoured by that customer" - obviously, this can no longer be "ensured" and simply will not occur as, as we know, that significant customer of RFT's is now in liquidation.

Spells big risk to me and a lot more unknowns on top of the disputes between personel. This is, as I said, the straw that broke the camels back for me. The risk and unknown are now way to big for me to have my funds tied up. Hence my exit. And, hence a few more people's exit and people reluctance to pay the price... Hence the dropping share price.

I note, I'll keep an eye on RFT, see how the new board conducts themselves under the circumstances and if they can pull themselves from this lull (loss of trust and expected income) they find themselves in. New contracts/customers will obviously be a considerable indication I'll be looking for.