Ann: Quarterly Activities Report, page-41

Exactly right, there is a timing difference between revenue and expense recognition versus cash.

Businesses buy and sell on credit, different customers and suppliers have different credit terms.

E.G. I sell widgets to my customer on 60 day terms.

Day 1, I make a sale for $100 (cash to come in 60 days)
Day 10, I pay my staff wages for $50 (cash paid on the day)

Day 30 - at end of month, I have made profit of $50 (sales less wages), but have had cash flow of negative $50.

Day 60 - I collect $100 cash from sale. Profit from month 1 now matches my cash position.

Page 4 of the report is effectively the Day 30 from a profitability standpoint ($15m revenue, $7m costs)