Ann: Appendix 4C and Quarterly Update - Sep 22, page-7

Not necessarily. Cashflow report only shows exactly that. Cashflow. So on a cash basis yes more money went out to produce goods than what what was sold.

But it doesn’t account for stock on hand. it’s quite possible more stock was manufactured in advance for future sales which will show down the line and in the financial statements.

In fact the company has actually made a gross profit for the last two years after accounting for closing stock.

Hopefully once the plant is up and running for the oat milk we see an even better today margin due to lower COGS.