Continuous disclosure

The recent article in the Australian contained information not previously released to the ASX on the performance and quality of the Reflow battery's
Redflow is  relying on a number of market update starting in April 2017

Redflow has recorded some unexpected product failure modes from remote monitoring of
batteries deployed at customer sites. Most of these problems were resolved on an ongoing
basis via ‘over the air’ remote deployment of updates to battery software. Thus, lessons
learned from ‘real world’ customer deployments are being fed back into product
improvement.
• Laboratory testing of electrolyte samples from one specifically identified batch of ten
batteries indicate that they may be at risk of failure due to the presence of impurities in
battery electrolyte.
• Based on manufacturing test data and ongoing operational product testing, Redflow's
expectation is that this issue is likely to be confined to a small subset of our stocks.
• Samples from a further 20 batteries out of our Australian stock have just been sent for
laboratory testing. The laboratory testing cycle typically takes about 10 working days.
• Delivery of new batteries has been paused pending the outcome of this further testing. If
the tests being conducted return satisfactory results, Redflow expects to resume customer
shipments at that point.
• Redflow also believes the issue can be remedied economically in any affected batteries by
the application of a simple chemical remediation (cleaning) process. Redflow is now
undertaking a trial to confirm this. If required, remedial action will be taken on any affected
batteries before delivery.
Battery problems resolved by production changes and ‘over the air’ software updates
Since Redflow partners began installing batteries at a range of customer sites, Redflow has gained
a greater understanding of the performance of our product under real world conditions.
Redflow has replaced or is in the process of replacing a total of 23 batteries in customer sites since
January 2017 under warranty for a variety of reasons.
Three batteries were replaced due to routine and minor mechanical issues. These problems were
resolved by changes to manufacturing processes.
Thirteen batteries were replaced due to operating cycle issues observed in the field that were the
result of sustained operation of batteries in a manner not anticipated during in-house product
testing. These issues were resolved via software updates to optimise the battery operating cycle.
The updates were distributed to our installed base via our Internet-connected Redflow Battery
Management System (BMS) units. No further failures of this type have occurred in the field since
the remote software update was performed.
Seven batteries were replaced recently due to a different observed failure mode. This has recently
been identified as arising from a separate aspect of the battery operating cycle, where unexpected
stress on the product is created in specific circumstances. Redflow has produced a new software
update to resolve this further issue which will roll out to customer sites this week.
Redflow’s capacity to use the Internet to remotely monitor battery performance, diagnose problems
and implement their resolution is a key success factor for our unique product.
Redflow expects to continue iterating and improving its battery software as we learn from real world
experience that provides insights additional to those gained from internal laboratory testing.
Temporary delivery delay to investigate potential supply chain quality issue
Redflow engineering staff have identified that presence of impurities in battery electrolyte beyond
acceptable levels may also contribute to this most recently observed failure mode.
A small batch of batteries identified as being at specific risk in this regard have had electrolyte
samples sent out for laboratory testing and these results have just been returned to Redflow.
The results show impurities in the tested battery electrolyte exceed operating limits set by Redflow.
These impurities were not present when the battery electrolyte was loaded into the batteries in the
factory. The impurities may have arisen from a supply chain quality issue with a specific batch of
source material used in the manufacture of the products tested.
Redflow has temporarily suspended delivery of new battery stock to customers until further test
results are obtained from additional battery stocks to verify the extent of the issue.
New laboratory tests of samples from a further 20 batteries have just been submitted to an
Australian test laboratory. Test results are expected to take about 10 business days to be returned
to Redflow. Additional stock will then be tested until the issue is fully characterised.
If test results are acceptable, Redflow expects to resume battery deliveries from the tested stock.
Redflow is also trialling a simple chemical remediation process to remove impurities from affected
batteries. Should this remediation approach be subsequently required, Redflow estimates the net
cost of this process to be about AU$500 per battery.
Redflow is also undertaking a range of improvements in respect of its material supply chain
management to mitigate against the potential for continuing issues of this nature in the future.
Redflow remains confident in the effectiveness of its technology and underscores that this recent
issue is not a fundamental technology deficiency, but rather it appears to be an unfortunate supply
chain quality issue that can be resolved by improved supply chain controls.
Redflow will provide a further update after further progress is made on the activities outlined above

Nothing Here suggest that the problem is a manufacturing problem with the stacks
On the 8 May 2017
Redflow resumes battery shipments

Redflow Limited (Redflow) has resumed battery deliveries to installation partners, effective
immediately, following a pause on deliveries announced on 24 April 2017.
Resumed deliveries follow Redflow’s receipt of a first round of laboratory test results which show
that 25 batteries in stock meet Redflow quality standards, enabling their immediate delivery to
customers.
Redflow has also had positive results to date from the trial of a simple product remediation process
designed to remove battery impurities if required. This process will be applied routinely to any
battery subsequently identified as requiring it, to ensure that all batteries shipped to customers
meet appropriate quality standards.

On the 29th June they issued this

Redflow Limited (Redflow) provides this update regarding its ongoing progress.
Battery Performance Update
Battery deliveries to customers and successful system installations are ongoing.
Since important ‘over the air’ software updates were applied remotely to our customer base (as per
our market update on 24th April 2017), only one customer site has subsequently experienced
battery faults of the type that these updates were designed to resolve. That site is the only one in
which Redflow was unable to arrange for the update to be applied in a timely manner.
A minority of other sites in which batteries have since had operational problems have all been
attributed to minor physical manufacturing quality issues. These batteries are being replaced under
warranty.

Nothing but minor problems
17th August they issued this

Battery performance update
Based on monitoring since our last market update, Redflow is confident that the performance
issues reported earlier this year are now resolved.
Redflow has successfully tested and proved the process to remediate battery electrolyte in cases
where battery quality testing indicates that this is desirable. Redflow is now progressively applying
this remediation to those batteries that require it.

Once again nothing more than a minor problem which has been fixed . There has been no more ASX releases in regards to battery quality problems.
Then last month we had Standard solar raise issues on hot copper which was also backed up by ND
In summary batteries were being changed out under warranty on multiple occasions .
So dose the problem exist today.
Simon referred back to the April release  as being the current situation.
And then this from Simon
Redflow offers two types of its 10KWh zinc-bromine flow batteries, which store energy by extracting zinc from a solution. They discharge by reversing that process. The company last year relocated its manufacturing base from Mexico to Thailand after its North American partner, Flex, failed to reliably make the complex electrode stacks that sit atop the batteries.
Orders were made, deliveries were missed, which Hackett concedes “pissed a few people off”.
“We had to hit the pause button … and now have to rebuild the sales pipeline,” he says.

Nothing in any of  Redflows ann indicate that the problem was a manufacturing problem relating to the stack produced by Flex and that the problem is a ongoing problem. Simon has released information which till now has not been in the public arena which should have been the subject of a price sensitive ann before the last capital raising .
It is now 12 months since this occurred and  the ASX requires  this if

Would a reasonable person expect the information to have a material effect on the price or value of the entity’s securities?

Yes a manufacturing fault requiring a large number of battery's to be replaced under warranty would have a material affect on the share price .
I can understand why they would want to downplay these issues but as a shareholder I am entitled to a reasonable Continuous disclosure

There are 200 battery's being assemble in Brisbane with stacks manufactured in Thailand  shareholder need to know that these are up to the highest quality .