Ann: Streaming Grew Strongly in September Quarter, page-52

Shakes, over time the accruals accounting of a P & L and the cashflow statement will equal out in any business. How they equal out will depend on the type of business. QFX has virtually no debtors, in fact they receive cash advance, but apart from employees and rent, and possibly prepaid licence agreements, they can delay some of of their obligations for a time. This means that cashflow for a time will be better than the stated P & L. But if then delay creditors then it will be much worse for a time (i.e. Q1 2014).

All that said, if the revenue growth stabilizes or goes negative then this advantage is finished. After all, the gap of money up front and delayed creditors is a one off in a zero revenue growth environment, The only way that cashflow can be better than profits is by not paying creditors as and when they fall due!!

The funny thing is none of what kat or you argue about is relevant. The fact is the company needs to raise capital very very soon, and it's going to be at very very low levels if at all!!! Personally I can't see it happening.