RE:The way I lookVery solid quarter I think.
* Sales - in line with expectations and over 300% QoQ
* Cash - plenty in hand and have demonstrated ability to control expenses
* Inventory - 46% increase in inventory on hand. Note big increase in Work in Progress - is this OTCs? If so bullish sigh IMO.
* No prospect of additional capital needing to be raised in coming year
* 2 new regulatory analysts hired in Q4 - I wonder what they are working on?? :-)
I guess only question is over the Customer Marketing incentives which are accordng to the MD&A: "The cost of marketing and development expense incurred in relation with the transactions with the customers was treated as customer marketing expenses and was offset against gross revenue"
It would be good to get some colour on these. I think there must be a significant element of upfront loading here, i.e. initial buying of shelf space with pharmacies and distributors. I wonder also with reference to "development" whether costs associated with initial contract set-up and distribution set-up etc have all been bundled in here. Certainly there will be costs associated with retaining these relationships but I hope this scale of marketing incentives is not replicated moving forward.
Anyway good quarter VANC. Looking forward to Q1!!