Ann: Appendix 4C - quarterly, page-47

"Manufacturing and operating costs rose from $729,000 to $934,000 as a result of timing differences and a significant down payment on milk powder production, the revenues from which are expected to be booked in the March 2018 quarter."

I had a closer look through this doc. You are right @rockstar Jones and @TheChoice it looks like the costs are for producing ione milk powder. I got a bit carried away.

About 200k (guesstimate) was a downpayment in Q2. And a 2.5 million payment for the production is scheduled during Q3.

The proposed cash outflows during Q3 ($2,784,000) exceeds available cash at the end of Q2 ($2,438,000). To me that means that they are pretty confident about receiving revenues in Q3 as indicated in the excerpt above or there would have been talk about another CR. So they must have a committed buyer. At least for a fair amount of it.