Ann: First Positive Operating Cash Flow Quarter, page-19

Just a guy:
How do you rationalise the substantial difference in forecast cogs (product costs) and the actual which seems to happen every q with costs invariably significantly lower than forecast? At a guess their forecast cost and revenue is both on the optimistic side. I can't explain it, perhaps related to weather, people being more energy efficient than forecast etc. My forecast is not based on their forecast but on past actuals. Perhaps I too am over-estimating. We will find out.....

Also what do you predict the debt will do to cogs and receipts? I don't think the debt has anything to do with COGS. It is a separate line item, $37k last quarter. (Basically 12% interest on the amount drawn) . I think in future quarters overall debt need not get much bigger as the cash flow will (almost) finance the investment activities. Debt might peak at about $2m, or interest payments of $60k/quarter. In the scheme of things (eg $7m customer revenue / qtr) this is a minor item.

Do you see them ramping up into nsw as I do? I have no idea. I probably err more on the side of someone bigger taking them out before it gets too big (and expensive).