1. Small initial testing sales would be payment in arrears terms, no upfronts. 2. Once production gets proven up the larger initial orders will be on slightly different terms, shorter payment terms and sometimes a nominal upfront. 3. Then there would be bigger term multi year sales agreements for ongoing long term supply with up fronts to fund material costs and production upramps etc. The dynamics change again and the cash flow evens out and improves substantially. We have customers at type 1 and some starting on type 2 right now. Our bedding guys may be the first to go to type 3. I wont be looking at a 4c until several customers are at type 3.
AJX Price at posting:
63.5¢ Sentiment: Buy Disclosure: Held
