Interesting to see that some on here would base an investment decision on a 4C?
The 4C is not a profit/loss, cashflow is all it reports.
Furthermore the 4C doesn't deal with sales, just receipts, doesn't include debtors build up (normally a 45 day cycle).
Furthermore the 4C did contain a note with regards to Stock build up of approx $2.5 million, which only would happen when you are mass producing, from research to date QTK don't build 500 units at a time, they build 10,000 units.
In addition to this why would QTK allow for such a stock build up if funds were being stretched and it meant doing a further capital raising? Rather they would be working on a JIT system for ordering stock.
Staff costs are an equation of pay cycles in a 4C as it simply deals with cash spent, not cost which can be considerably diferent.
It was also suggested by a poster on here that marketing is meant to have grown by 192K, I thought the ytd total was 55K?
So a 4C is missing vital data that can only be found in a financial statement such as a P&L.
Growing companies are never cash flow positive and QTK have came very close and i am quite impressed with there efforts to date.
China is all go and the latest update confirmed this.
Just a bit more to add and that is that large stock quantities on hand actually signals that the trade debtors figure to be included in gross revenue will be high and given that QTK's income is residual (ie:most customers on long term contracts) paints a very optimistic picture.
****But we will have to wait for the P & L to ascertain if my view is correct and of course trade creditors must not be left out of the equation.****
Well done QTK for showing that revenue is growing on a cash basis. One can only deduce that if revenue grows on a cash basis then on an accrual basis we should be able to expect further growth.
Congrats to the QTK team well done!
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