Bob, I think they have been adding to the payables expense as...

Bob, I think they have been adding to the payables expense as the production run is coming through.

With each new batch of wafers representing a fraction or increment of the total contracted production run, my understanding is that the production run is halted until the latest batch of wafers are tested, if there is a gap between performance and design spec. they restart the production run with any new modifications. The production run goes forward one step to the next iteration of wafers to be tested.

It appears to me that the amount budgeted in the 4c Quarterly for production is being carried forward until the production run is completed.
However I don't have inside information on the terms and conditions that AP have agreed with Tower Jazz or any of their other creditors.

I compared the balance sheets as at 31/12/2018 and 30/06/2018, and the difference in trade payable is $60,335, even though budgeted amount as you have noted are around $200k to $250K, I think the $60,335 is either a progress payment or contingencies associated with the stepped production run.

I'm hopeful they are narrowing the gap between tested performance and their design specifications. Once they get a prototype for production, the entire run of wafers waiting at the various stages can then go straight through to completed chips for distribution to customers.

Something I would like to know more about is the $83,000.00 received from customers this quarter, I would like to see more of that in coming quarters.

GLTA
Do not rely on my thoughts/opinions or figures, pls do your own research