I think you will find that there is a fair amount of money being spent on manufacturing custom prototype products, or products that are being shipped to aus for M2M. These might not be counted as with inventory or revenue. I don't think anyone's pulling any wool over anyone's eyes, I think it's more likely that Joe blogs just doesn't understand the complexities of running a startup manufacturing business. It's complicated, and they have to invest a fair bit to get their foot in the door.... some will pay off and some wont.
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