Ann: December 2019 Quarterly Update, page-7

Cash receipts can lag revenue for accounting purposes, due to invoices lodged, but not yet paid. So the cash statement can underestimate revenue for the first half.

In addition they have also told us that there is nearly $2 million in inventory build up, primarily for the largest customer to be delivered in the next 2 quarters. That would be worth even more in billings.

They have confirmed the revenue target of $24-29 million and the possibility of capacity expansion.

As I indicated in the thread after the Chairman's address current capacity could produce annual revenue of $38.5 million and by spending just $4 million they can expand annual capacity to $58.5 million. So they can comfortably produce this year's revenue target in the next 2 quarters with existing capacity.

I think the keys for us are:

1 New contracts in coming months as they have flagged (see DirkKuyt post).

2 A jump in revenue this quarter (as evidence the target will be met).

3 Confirmation capacity will be expanded, allowing much higher revenue next year.

4 Better margins (and revenue) in the second half and thus ongoing profitability.