Half year report indicated that Q2 sales were below planned...

Half year report indicated that Q2 sales were below planned level due to slower that expected rollout to B&M stores by large retailers. This resulted in larger than planned inventory at the end of Q2, with two consequences:

• No need to manufacture more IQBuds in the short term
• Existing IQBuds production line could be converted to IQBuds Boost production (no need to set up a new production line)

So there will have been a production hiatus while the IQBuds line was converted to Boost, and product validation and testing completed. Likely little if any Boost production in the quarter while this was happening, hence lower manufacturing costs for the quarter. Manufacturing costs should return to normal this quarter.