Pacific Edge released a statement to the market yesterday, outlining how $3.24million was incorrectly overstated as an expense rather than against receipts.
Forsyth Barr broker Lyn Howe said Pacific Edge ''was not doing itself any favours'' around confidence in how much cash is actually coming into the business.
Pacific Edge had made an error by classifying the bad/doubtful debts, announced in its full year 2017 result, in its cashflow statement as an expense, rather than against receipts, she said.
''This was missed by the auditor and the mistake has only just been found,'' she said.
Mrs Howe said there was ''no implication'' for Pacific Edge as the bad/doubtful $3.24million debt was already reported in other expenses in the report.
She noted operating cashflow for Pacific Edge was unchanged at $17.8million.
Pacific Edge has established a critical beachhead into the large and lucrative US market.
However, it crucially needs sales to ramp up further to become cashflow positive, after 14 years of research, development, copious regulatory hurdles and marketing.
