Ann: Update to Financing Arrangements, page-84

I have no insight on the sales order issue for LiFX. And I am unsure if there is any merit in the company disclosing any sales orders they have received (other than to shore up skeptical sentiment). It could be an albatross around their neck to disclose sales orders as the expectation would then be that they disclose all future sales orders. Which would soon become laughable. And that is assuming that there are one or two large sales orders as opposed to many smaller orders....or that the customer making the order would be comfortable in the disclosure. I just don't know.

But here's my gut feeling based on my own experience in getting 'big swinging dick' retailers/customers (who were many multiples of my business size) to commit to orders in sufficient time so that I could fulfill their peak time needs. They would typically refuse to make any commitment till closer to the time and instead provide me with a forecast of their expectations, and then expect me to take the risk and build inventory so that i could meet these forecasts. They accepted that if their forecasts were under, then it was possible/likely that the increment would not to be fulfilled. However, if their forecasts were over, the inventory carrying risk was all mine. Obviously, they always provided higher forecasts than what actually transpired. They took advantage of their market position. I had to accept the reality.

I don't know if the same applies here....but would not be surprised if it did.

All IMO.