I would like to know what the other working capital consists of. Is this just the cost to produce chemicals and fabrics and buy equipment?
In the last 2 quarters we have received enough cash and commitments to cover staff costs, marketing, R&D and leased assets, but the other working capital has been more than the cash and commitments just on its own.
How can we be spending more on chemicals, fabric, equipment, etc. than we are getting in POs and contractual commitments? If it is mostly for the new lab equipment should we expect this to subside back to around the half a mil mark this quarter, or will it keep increasing as we are producing chemicals for more samples and doing more trial runs etc. with new customers?
Does this have to do with the lobbying and work on Capitol Hill at all? Probably a noob question but not sure on that. If it grows with cash and commitments it may be an issue as there is an obvious lag between commitments and cash in the bank, though I suspect cash will swamp it within the next couple of quarters, and we have a ton of cash and a pending capital raising anyway..
AJX Price at posting:
78.0¢ Sentiment: Buy Disclosure: Held
