Ann: August Operational Update, page-15

Following on re the margins
When looking at the June 4c below
Receipts are 3,782k
COGS are 2568
3782/2568 = 1.47 so a 47% larger receipt than cost of gaining sales
or 47% markup
2568/3782 = .679 so 68% of receipts are spent on delivered product (electricity) implying a 32% gross margin, not the 18% stated
Obviously an anomaly due to the three month period timing issues
Repeat the exercise on the year to date to minimize timing issues
10296/ 7700 = 1.34 so 34% markup
7700/10296 = .748 so 25.2% gross margin still above the 18%
I would pick the difference ~ 7.2% are the receipts in repayment of conversion costs payable by strata's over the term of their contracts as part of the monthly bill. A handy top up to cash flow.