Essentially, the company was on the hook for $2mln + GST last...

Essentially, the company was on the hook for $2mln + GST last year in respect of the current year. This would have required a capital raising to satisfy.

The expert ruled now that the company was still liable for the extension fee until 1 February 2023 for 7 out of 12 months (1.2mln). 500k was already paid with inventory, 700k will be paid with cash.

Disputing the extension fee allowed the management to delay the payment until the company was cash positive.

Settling the dispute out of court shows that management was pragmatic and not wasteful.

Great cash management and strategic management skills!