Hi there Sydney guy Appreciate your interest in the business....

Hi there Sydney guy

Appreciate your interest in the business. You have raised quite a few items here that I can address in our webinar next week.

But for now:
"Obviously if that's the case they will be making a lot less revenue as there are distributor margin/ commissions that need to be taken into account"
(RL): we sell to distributors at a wholesale price which already includes their discount, therefore the revenue we recognise and report is what is on the invoice...we don't invoice them for $1,499 for the R2 then deduct their discount/commission.

"The sudden use of promoting one months revenue is absurd"
(RL): we felt it was an appropriate disclosure given the significance of the month with the release of the R2. Monthly reporting is prone to seasonal/timing swings so your point is valid.

"Clearly there are terms being made with resellers as revenue for 90 days was 1M of which553K was in June and , cash received for the entire QTR was 803K"
(RL): our customers are a mix payment terms ranging from deposits upon placing a PO through to x days post delivery, which is standard for a business of this type. For example, not all of the cash from the June revenue figure was received at month end (no balance sheet makes it hard for complete analysis of quarterly cash flow reports).

"Last report I replied to the CEO and made the prediction that it would infact need more capital despite claims it had no plans and also detailed errors in accounts and other items which made no real sense. None of these were actually addressed and within a week capital was raised."
(RL): please send these examples to me [email protected] - we obviously would like to address your concerns and clarify accordingly. With respect to capital raisings, the company will make the appropriate disclosures to the market as required.

"Now before you tell me its only 100K, as a percentage of revenue its unacceptable, still have no idea how working capital improves if you reduce (pay) long dated payables"
(RL): I will confirm, but the difference literally could be one dollar $1,249,999 to $1,250,000 would be rounded to $1.2m to $1.3m - notwithstanding, your point is noted. Also note that the financials are unaudited so subject to potential movement before the hard audit close.

"Notwithstanding this, if its now selling 65% as you have just claimed through third parties its needs to sell a lot more printers to maintain its revenue and cashflow."
(RL): I'm not sure where these %'s have been sourced, but I think I dealt with the third party margin issue above. The company has been selling via wholesale/retail channels for the last 3.5 years so the historical revenue already takes this into account. If we were selling via our online store only at 100% margin, and then switched to a wholesale channel strategy, then your point is correct (we would need to sell more units to maintain revenue), but that is not the case here.

These are all really good questions as they do help us frame our communications to be better understood by the market. It helps all of us for this to be the case!

We have our webinar next week so please feel free to submit any other questions beforehand so we can address then.

Robo has spent almost 2 years designing and developing these new printers and is excited to finally have them in the market, selling to existing and new customers, and receiving great reviews and customer testimonials. Given the nature of the product, we can't "win" every customer, there will undoubtedly be some who have issues, but you can be assured that we will be doing everything in our power to ensure that every customer of Robo's is given all the tools and support they need to realise the possibilities of 3D printing.

Cheers
Ryan Legudi
Managing Director, Robo 3D Limited