The $350k wouldn’t be in inventory. It should be machine/equipment on the balance sheet. Inventory are things you plan on selling and machine/equipment are depreciable assets. But either way your point stands that it isn’t on the balance sheet and that is an issue.
They have stated those things have happened with Velocity that are not included in the financials, the PRs say that explicitly.
The reason orders would be converted is to have Velocity be able to be reported in US GAAP accounting which is what the PR is referring, they cannot include them in the financials until they are able to report the financials on an accrual basis US GAAP reporting and not IRS cash basis.
And orders being converted means using revenue recognition per US GAAP and then entering them into the new ERP system for MVNT. It has nothing to do with customers having a system or not, it is using the original contracts and purchase orders and figuring out how the revenue needs to be recognized per accounting rules. Revenue recognition is one of the most difficult areas of financial reporting and needs to be done on an order by order basis
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