What? Before they did that capital raise the business was...

What? Before they did that capital raise the business was essentially break even. The reason they raised that cash was to spend it growing the business and gaining market share, and that's what they're doing. Of course the cash burn is going to spike up, that was the plan. They didn't get $40m just to stick it in a savings account.

A key line in the report: "During Q1FY2019 the Company significantly increased its inventory levels in anticipation of an expected increase in consumer demand."

The company didn't suddenly become way less profitable, they're just holding on to product for the moment rather than selling it. They're waiting for new supply agreements to come into effect so they can sell at a higher margin. I don't think the report is worded very well and it's a bit ambiguous, but that's how I interpret it at least.

Not the worst time to take some profits, given how far it's risen up. The numbers in the quarterly look bad, but the fundamentals behind them remain strong. I guess we'll see if the revenue shoots up next quarter.