I think a few people need classes in financial analysis. There...

I think a few people need classes in financial analysis.

There are complaints about the projected cash outflow of $1.9m.

The greatest component of that is manufacturing costs at $0.970m (compare $0.734).

Now if we assume that represents cost of goods sold, and sales to cost remain constant, then this projects an increase in top line revenue from $2.865m to $3.79m (2.865 * 970/734).

Additionally costs are down for Staff ($633 to $498), admin($555 to $252) and R&D($356 to $42). This represents cost savings of $0.75m.

Note, while a reduction of R&D concerns me, when combined with the increase in Advertising from $124 to $142, perhaps suggests a company which is in transition from development to moving products.

Based on cashflow projections, and the analysis above, we could be looking at an increase in net cash from operations from current $456 (not bad by itself) to $2.1m projected.

I'm happy with that - spending money to make money in a growth business.