Real deficit we need to coverThe following item directly affecting cash flow in Q1 should not show in Q2:
-Start up cost, staff member cut (blvd and HQ), and purchase of property (5,5mil).
When you remove these items, our deficit is only 1,5MIL.
So again, if you add the new revenu (from SAN Diego, new detox LA, and a little of Portland) and the increased margins resulting from staff and HQ cuts, that difference is not so hard to cover. Technically we could be cash flow positive in Q2 (more realistically in Q3)
These calculation already takes into account insurance "cut", so if we settle with them this will add automaticaly to our profit.
My point is: profitable soon without insurance settelment, profitable NOW with a settelement
My OPINION only, based on some assumption.
Now a guess, just to kill time until we find a bottom so I can add more: Q2 revenu of 8,5 MIL, editda of 1,5 MIL, cash reserve down to 10 MIL. Q3 revenu of 10MIL, editda of 2,5MIL, profit of 1MIL and cash reserve of 11MIL