Ann: Quarterly Activities/Appendix 4C Cash Flow Report, page-2

Production and operations update

As disclosed in previous market releases, the Company’s manufacturing process has been materially impacted by quality issues in a key externally supplied essential component of the battery stack, specifically glass-filled HDPE sheets. The componentry did not meet specifications, and the technical solution has been complex to solve, with multiple batches failing quality checks. A number of alternative suppliers engaged over the last four months also failed to meet specifications and quality assessments.

As a result, production of customer-grade batteries was intermittent and significantly interrupted for most of H1 FY24, which has had a direct impact on delaying projects and the associated revenues.

Redflow has worked on a resolution with the supplier, qualification of alternative suppliers and accelerated a more fundamental battery design iteration using an injection moulding approach that eliminates the need for this specific material.

This issue now appears to be resolved following a rigorous design of a new part (including use of third-party engineers) and extensive analysis and testing. Redflow is also testing substitute glass filled HDPE sheets from other alternative suppliers as a further back up.

Following the resolution of these issues, customer production is planned to recommence and ramp up from 1 February 2024.

Despite the setback that has delayed anticipated revenue over the last two quarters, Redflow’s focus on ensuring battery quality and the decision to prioritise a robust, long-term solution before the production ramp-up for the large projects announced is required and beneficial to the Company’s future success.

I was wanting to see increased production numbers.

how the blazes can they fill orders if they haven't yet increased production.

orders don't mean anything if they can't fill them.

not normal for a trading halt over a 4C. they are expecting a sell.