RE:RE:RE:RE:RE:Will hit 50 cents within the next 30 days All fair points. No doubt this is 100% speculative.
I still think they should sell Bullfrog as a partial if not total solution to their leverage, which is not uber high runniing at 4.5x Total and 3.7x ex Leases. It is the amortizing nature of their debt that is the problem as it, along with mandatory lease principal paymnets, were a use of cash in 2021 of roughly 10mm and will be 7mm for 2022. Killer on a business that is trying to do 30mm in Ebitda with SG+A savings if they can realize them.
This EV was never lopsided and was not in need of $40mm of Equity. That equity raise did ZERO to help FCF. It probably could have used $10mm max. But what it really needed was a new credit facility in the form of a PIPE to take out the TL....that improves FCF immediately. That, along with a sale of Bullfrog should happen asap imo.
Speaking of Leases, they need to rationalize both new HO leases (insane to have taken that on) and local leases around the continent (true, they have way too many locations to have economies of scale).
It is really unfortunate that the Founders, Management and the Board have run this nice, little business which is in the right space with huge tailwinds as the world electrifies...into this situation. Founders need to act asap on a CF and a sale of Bullfrog, or get the heck out of the way and let others do so. How have they done so far? Their track record is in the current stock price.
And finally, horrible Board Governance, that won't but certainly needs to change.
I give this till this Fall to see what they do but they have had plenty of time to get all these items accomplished already.