I have no doubts about demand for their products and so I am...

I have no doubts about demand for their products and so I am mainly interested in the cash balance and how close they get to running out over the shorter term. I find it interesting they went into this half year with $7m of cash, with about $25-30m of the $35m revenue guidance already prepaid but needed to be delivered/worked on.

James
I suspect the share price is anticipating a capital raise, and perhaps with defense contracts, that may be a valid expectation (I've previously seen for EOS for example the company having to fund the entire order and only get paid after delivery and once the customer is satisfied of the product). Having said that, I'm not sure your comment above is correct because my recollection was:
- they had ~36m in cash at 30Jun22 which was a prepayment for the USD33m order from Europe (of which USD22m was yet to be delivered which accounts for most of the ~38m of trade payables at that same date)
- that european order was met before the end of Sept22 so whatever remaining margin they made on that deal seems to have been put back into ongoing running costs, supporting further orders/building inventory

I'm hoping that the A$26.9m order received in 1Dec22 was the reason for the material increase in Inventory to $25m (although it does not say WIP, but rather just Product/inventory), but it does appear that the cash for this order is outstanding and/or being paid in tranches with the delivery else you are right in that they should have run out of cash to complete the deal. My hope is that Aus defence would pay relatively quickly given local company supplying global players.

I suspect that the profits from the US33m order gave them the cash upfront to fund some of these additional orders, and to the extent their margins are healthy (and they can get payment in and/or leverage loans on confirmed orders), they can avoid a capital raise, but on the balance if probabilities it seems unlikely given they have ramped up fixed costs to support a larger business. I also think that the other thing holding them back is they have not locked in those larger ballistics orders they mentioned (including India) as well as the multi-year support contract they spoke about (which would be done in 4Q23)