RE:489,000 grams sold last quarterKeep in mind it says they have sales or committed sales of 489,000 grams. Depending on contracts and bookeeping not all of that may show as revenue this quarter. We know XLY is buying 50% at $2.50 so that is about $610,000. There operating expences last quarter were less then $500,000 and no reason to think that will change. The other 50% I would think would go for at least $4.00/gram, possibly up to $5.00/gram so that would be an additional $1,100,000. That would give us about $1.7million in revenue and over $1.2million in profit, which would bring us to $0.015EPS for a quarter. Given some of this may in fact be revenue on the books for Q2 since they say committed sales I think $0.01 EPS is safe. and $1million added to the bank account for the quarter. Q2 should likely see that number grow. With no debt and positive cash flow and a building they can use and security they should be able to secure financing for the expansion if they choose to go that route. I do not think they should be in a rush for the expansion. They are in a good spot, let them report a couple solid quarters so they are in the best possible position to negotiate favorable terms for financing, and have more cash on hand.
If they can show $1million+ in quarterly profit in consecutive quarters, the SP will move north of $0.50.
travdd wrote: Probably around $1 million in the bank if they put a few $100ks towards paying off their debt, which they likely did... if they can add $1 million each quarter to their bank statements, that expansion is just around the corner...