CHART Thread, page-11

From September Quarter update (Good to have a re-hash and overview of past announcements)

We have experienced higher cash outflows than the previous quarter due predominantly to an increase in inventory to accommodate for sales growth and an increase in lead times to cover seasonal shutdowns. We are currently holding $1.5m of inventory to cover the expected growth in demand for our products. This inventory will be monetised by new orders over coming periods, reducing cash outflows as existing inventory levels are sold down.”

“The increasing amount of business that we are undertaking with larger companies has also resulted in longer payment time frames. The quarter also saw several large annual payments and some one-off capital items. Spending on these items will not be repeated in the coming quarters.”

“Finally, the expected $464,000 R&D tax refund was delayed beyond the quarter and was received in early October.”

“Looking forward to future quarters, net cash outflows are anticipated to be substantially offset by cash receipts from customers. Historically the December quarter is our busiest trading period.”