Ann: Quarterly Cashflow Report, page-9

The huge unknowns with any of the agreements in place is the payback of ongoing costs in marketing , , distribution supervision and support.

The costs are huge when a major partner wants to bill them out and require large volume to overcome them or the alternative is a fixed amount received per package sold but usually they want it netted out against sunk costs up front . Different story when you are supplying base ingredient but there is a whole matrix to consider as when you start to get traction and cash flow in one country you are starting pre launch in another so you will see sales volume / production increase and yet actual $ dollars falling to bottom line may take a very long time. Then take in monthly and quarterly rebates and adjustments and even the numbers you thought you had are diminished as buyers groups receive rebates in arrears for volume sales. Add in research sinkhole of new products , trials etc and it can be very hard to interpret just where $ are coming from and going to until it smooths out. Biotech are $ hungry so am always wary of them raising as well to speed up next project on back of hype over a launch and they do it before income smooths for obvious reasons and meanwhile management are sucking the massive bonus for reaching criteria and loading up on cheap options.