Phivida has a horrific income statement but enough cash to last for 1-2 years depending on activity. Even though they have been successful in securing financing in the past, there is no assurance that it will be able to do so in the future. The company is deep within a fad market presenting a fad product that urgently needs sales. A large and continuous buyer is needed to purchase at least 30,000 units
Competition in the cannibis extraction industry is intense and Phivida has zero market share in the health drink industry, its only a matter of time before investors get tired of the “great idea” and start demanding real results or they will dump stock.
Management has done nothing out of the ordinary and has leveraged the right amount of stock for services in order to save cash. However, Mr. Marrelli’s existence on the board is exploitive and brings zero expertise or market experience to the table, be on the watch for more appointments to management like this as it suggests the company will become a shell for raising short term capital only.
..when will the company get sales (30,000 unit level) and stop increasing its debt position.