Ann: Quarterly Activities, Cash Flow and Investor Call, page-8

The reduced cash receipts at $4.8m were probably expected due to the interruptions from COVID.

But I am perplexed by why the total outgoings have actually increased from $6,048k last quarter to $6,485k this quarter (when you exclude the $168k government grant)?

This quarter (April - June) was when we were expected to see the benefits of the $8m per annum in cost savings that SW1 announced?

The two areas where outgoings decreased were staff ($2,512k down to $2,091k) and interest costs probably due to CN notes being paid out ($278k down to $54k) - but the product manufacturing significantly increased by over $700k in this quarter?

Can anyone shed some light on why the product manufacturing and operating costs would have increased so much this quarter - on a cash receipts figure that was over $1.0m lower for the quarter?

Management had some serious disruptions in this quarter, and they also mentioned a couple of projects were pushed into this quarter - so they need to be given a bit more time to get consistently cash flow positive IMO.

But this was definitely a 4C result that I wasn't expecting - and it does probably explain the sell off over the past month or so.