Ann: Vmoto's 2Q24 Market Update, page-28

Interesting discussion,

VMt seem to know all the rules.

Rule number 4.

Sell it before you have to pay for it.

Rule number 5.

Get cash on delivery if you can't get pre payment.

"The other stuff.......new, existing sales revenue streams are not mentioned. To sell that stuff you need inventory,. How much I don't know. But the inventory requirements for that lead me to believe that creditor levels could not drop"



There are all sorts of detail in the deals that the VMT team do that aren't evident in a casual read of the announcements.

Trading terms.

Back in 2019 when VMT was loosing money and had no mates it had to prepay for all its purchases.

Along came the JV manufacturing agreement with Super Soco in 2020 which added volume and reduced costs but importantly to the current conversation was the start of the journey to moving from pre payments to 90 day terms. A road to increasing available cash by increasing creditors.

Super Soco's demise.
When they bought the Super Soco patients I asked whether they intended to bring the manufacturing back into VMT. The answer was that the JV Manufacturing Company was the one that had a been building the credit history so would continue.