I think what Sly is saying is that R&D can be spent but the product is not finished or in the manufacturing stage of R&D were the company will auction a position in a new product too wholesalers, retailers or the general public to see the demand for the product this of course adds a cost both in the way of debt because the product is yet to be delivered or in the case were the demand is never really there then production R&D will never happen that could include training machine purchase's ect. along with more debt and more depreciation that could result in a right down depreciation cost put towards old technology R&D the company holds that could of been piggy backed through royalty payments to the founders of the technology in question.
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