Ann: Quarterly Activities Report and Appendix 4C, page-15

A great saying in life is "Its never as good as it seems and its never as bad as it looks"
This is not a dreadful result at all.
In terms of the operating cash flow as a loss of 2.2m remember that 875 000 of that has been spent on research and development. Take that out and the operating cash flow loss is 1325000 which is a drop on Q3. Why is that important? They are spending money to make money. The 875000 was spent on work on a new generation of products. Potential Max3 or OTC hearing-assisted devices? That's a big investment so something must be brewing.
They have also increased their advertising spend by 500 000 for the quarter. and are getting a good return 1.8 on the spend.
Further to this, the product and manufacturing costs show that there is a forward pipeline of sales to come. The production runs for the rest of 2021 and into 2022. That's 6-9 months of production and sales.
Admin costs are reduced but the increased staff costs with large headcount is a worry but also could be seen as a show of faith.
You wouldn't compare sales from Q3 to Q4 as a fair comparison. The quarter to quarter sales will fluctuate. We want to be prepared for the next six months which leading into Christmas will be our biggest sale period.
Overall a very satisfactory quarter of growth. It's ready to explode.