Ann: Quarterly Activities/Appendix 4C Cash Flow Report, page-59

ZNO produces finished products in the US, UK & NZ, it also holds inventory in it's various locations for faster delivery.
That is one of the reasons why inventory at around $13m was so high.

Gross Margins should only be.impacted by freight costs of raw materials (concentrate, bottles etc) to manufacturing facilties.
Freight costs of shipping finished products to customers should either be paid for by the customers or reported as selling costs.

An explanation of why gross margins dropped off a cliff in FY21 was never provided.

Overheads are the big one & ZNO is really rolling the dice IMO with the local office expansion model.
Back in 2018/19 ZNO had very low overheads & even made a profit on very low Revenue.It had high cash levels & low overheads & plenty of time to get the business going.
Now if Revenue doesn't pick up (or even continue to fall) with all the additional overheads it's going to face a cash crunch.
It's going all out to change it's strategy with no easy way back if it goes wrong IMO.

FY22 will either see ZNO succeed or fall into a hole IMO.