Ann: Notification regarding unquoted securities - NUH, page-113

Its pretty simple if you read it, it says that materials were to be used on three different projects, each project has a code name, project one had left over materials after manufacturing that Nuheara said not to use as the part became obsolete. . On the next two projects there were left over materials, that Nuheara said could be used back on the initial project. The projects ended ( one would surmise on the realtek agreement that they have spent 6 million on) and the company are claiming the materials are unpaid for and want paid.

As you say anyone can make a claim, but the market should have been notified that a claim had been lodged. I would surmise that the agreement in malaysia was done on minimum production runs, and the sales did not reach the required levels, therefore they are being sued for non payment. Happens all the time in CE manufacturing, you have to go with minimum order production runs with these suppliers, if you dont sell enough, you end up with leftovers.

You would not see the ins and outs until it went to discovery, so given the current predicament with being off market, non share trading, production halted, realtek debt due in a month, with this on top ( although it is just a claim )takes the potential owing from 2.5 mill to 5 million AUD, which, barring a miracle, will not happen.

One big mess has been created, someone needs to step in to clean it up fast, or it is a goner.