I suspect the target margin on product will be around 70%...

I suspect the target margin on product will be around 70% (that's normal in this space).
However, they can only achieve this target if they manufacture in large quantities.
Given available cash, CT1 will be producing in small batches. So margin will be a lot less.

In terms of doubtful debts, I'd speculate that it has to do with the food industry target market.
It's not unusual in the food industry for high business-owner churn.
For example: cafes and restaurants pop-up, they operate for a while, and then they are sold.
In this scenario, the new owner may not want CCP and the previous owner just doesn't pay-out the CCP contract.
CT1 would be wise to use a debt collection agency to tidy this up.

The CT1 restructure announcement stated the intention to leverage the profitable India operation.
Therefore, the short term focus is definitely on building solutions for others.
I don't mind this... the massive market uptake for IoT seems to be a while away.
See: https://www.iotaustralia.org.au/2019/03/04/iotnewanz/optus-business-examines-industry-4-0/

When it comes to what CT1 is hiding... well my guess is the US sales operation isn't working.
We seem to have been pushing the US barrow for a while (so we've spent heaps of cash there), and there's little to show for it.
In contrast, there's been plenty of website & Facebook posts on Australian sales.
If the US operation was working, there'd be recent posts announcing direct and JV sales.
But there's been nothing on US sales for a while...

Still, the 20 February 2019 announcement advises shareholders that there's a strong sales pipeline with 'material' opportunities in it.
If the Board were going to reset shareholder expectations, that would've been the announcement to do it in.

Yak.