Financials, Financing, Forecasts etc...Some musings now that the market mania has abated a little bit for now....
Based on the rate at which cash went out the door in the quarter ended September 30th, if the trajectory continues reasonably close to that for the 4th quarter, then there would have been a little over $1 million in the bank at calendar yearend.
That in turn would imply a zero cash date sometime in calendar Q2 - meaning that they will need to raise cash in March / April timeframe, which <surprise> is near exactly the "11 week" spot that Stingo (who appears to have disappeared from this board) spoke about in his posts, if you go back and check. Interesting.
If you look at the numbers for the quarter ended Sept. 30th, 2017 (and they are not presented separately, you need to subtract the previous 'year to date' figures from the Sept. 30th yearend figures to get the numbers that are just for the quarter ended Sept. 30th), then you will see that the rate of sales growth actually SLOWED i the quarter ended Sept. 30th. In other words, the company added less absolute $$ revenue (gross or net, does not matter for this calculation) than it did in the preceding quarter ending June 30th, 2017.
So the folks at Veggemo have their work cut out for them and I wish them, and all of us shareholders, good luck and best wishes in raising the soon to be necessary financing and then putting it to good use.
It will be interesting to see the price at which this upcoming financing takes place. Well over a year ago they financed at $0.10 and it would be a poor reflection on management if they end up financing again at equal to or close to the same share price level, as the dilution will be severe (depending though on how much $$ is raised).
I don't put much faith in those who proudly proclaim that they 'always expected the company to ned to raise more money', because that is not the issue I'm raising. You see, one can raise money at higher share prices with much, much less dilutive impact on existing shareholders (assuming you've done your job to grow the business and it's shownig in financial results), so anyone who says they "always expected" the future financings to take place at $0.10, well let's just say it's not a very believable claim. We do need to be realistic about the situation the company is in.
The financials for the period ended Dec. 30th, which will be due out by end of February, will be worth a close read.....
Good luck to all....