Ann: Appendix 4C and Business Update, page-2

Anyone follow this stock?

I'm trying to reconcile the following figures from the Key Metrics table:

- a product margin of 49.4% (a)
- cancellations and returns 6.7% (b)
- offers 19.4% (c)
- Gross Margin 40.6% (d)

Not sure whether (b) is related to the calculation, but don't you need to at least subtract (c) from (a) to get (d)?

This would give a product margin of 30% ...

I know there are timing issues, but in the Appendix 4C report, we have customer receipts of $906K but product manufacturing and operating costs of $1.082m - which implies a negative product margin and ultimately ties in to a monthly cashburn of over US$200K.

All a bit confusing - any comments appreciated.