Q4 is a very slow period (we think, last year the new facility...

Q4 is a very slow period (we think, last year the new facility was waiting on TGA approval), so much of the 90 days could be collected by the end of the FY. FY19 AR balance was 1.7m, less than two months of revenue. So cash will be flowing out of AR and into inventory to prepare for next year.

The company ended FY19 with about 7m of current assets, about 6m net of current liabilities. H1 ended with about 12m of current assets, with an additional 1m loan from Lev in current liabilities. The capacity expansion was basically already paid for, with the PPE increased over the six month period. So the 4m raised went to repaying the 1m loan from Lev and then into WC. They had very little excess cash before the raise, and now they say they have a cash balance of 2m, so in actuality maybe they only needed 1m or so to handle the seasonal increase in sales. So 7m current assets plus an additional 2m midway through the year was enough to facilitate an increase annual sales from 12m to ~30m and double production capacity. That 30m of sales would get us close to 15m of EBIT, if it happens.

If we hit the sales target for H2, I figure we would have another 10m of WC (no cash taxes) on top of the ~12m+3m. 25m total current assets with a lot of excess capacity... they could give 4m back and still handle over 100% revenue growth in FY2021, as they would begin the year with 3x the amount of WC as they had at the beginning of FY20. On top of that, given how they carry almost no current liabilites, they are keeping their options open to finance it somehow.

I would say it's potentially a very good sign that they are only expecting to give 4m back, as it still leaves them in a position to grow revenue at triple digits again. If they didnt think they might grow that fast, then they would likely return capital at a much higher clip.