I was well aware of the details that you refer to in both financial reports, and they were used in my calculations.
As described in my post the realisable value of each test net of cost if sold is somewhere around the $30-$33 mark, so their stated value of $234,223 at 30 June indicates roughly 8,000 units held then as inventory.
Their reduced value of $217,666 at 31 December indicates about 7,000 units held at that time, with this then provisioned as a net expense and written down to value $nil as you correctly point out. This provisioning does not alter the number of kits held, only their assigned inventory value.
The Wondfo distribution agreement was extended by six months in July until 31 December. The termination of that agreement would be the reason for the inventory provisioning being applied at that time. Nonetheless this should not prevent the Company from selling the units it has purchased if interest arises.
Assuming no further sales do eventuate (i.e. their effective value is $nil) then the net cost of the venture would be about $260K, as indicated in my post. Whether this cost can be mitigated by adding value to the Lyramid negotiations is yet to be seen.
Cheers
T7
CDY Price at posting:
8.1¢ Sentiment: Buy Disclosure: Held
(20min delay)