important re cash flow analysis, page-6

123.........

when QTK took over in August last year it had roughly 6000 clients.

It had NO stock to sell until February 2006 due to transponder redesign etc.

QTK took delivery of 10000 units in February.

they are selling roughly 1000 units per month now which is increasing month over month.

as such........6000 can only be billed as their renewal period occurred.

i have made the simple assumption of 1500 billing occuring per quarter......this of course would not be true but is the best methodology we can work on.

so the 10000 QTK have now......will not be billed again until same time next year and so on.

is this clearer?