Gross Margin positive and Cashflow positive are not the same thing but in Redflows case there's not a huge difference between the two. I did a back of the envelope calculation - the estimated cash outflow for the March 2019 quarter was $4.13m. If they sold and received 3 months at 130 units per month at $US7k, that's about $3.8m of cash coming in.
Of course it's an unknown time until they sell and receive payment for at least 130/month - so the cash balance is going to decline and require an additional capital raising. No doubt their broker Morgans is lurking ready to undertake a capital raising if asked, but it remains to be seen if they can source the funding required from somewhere else (Clean Energy Council, China, an energy company ? etc). If a capital raising and the issue of new shares it remains to be seen if its completed as a rights issue or placement. A lot can happen and the price at which it happens will depend upon the progress of sales. It all comes down to selling the product now.
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