RE:Revenue
railbird wrote: Hello FarmerI4
I am the poster that you are refering to in your post.
I believe whatever you do with your stock is your own business. Differing opinions is what makes a market.
And I think no one would disagree with you that this company needs to increase sales this year and beyond.
I just wanted to clear up that I got those figures from the last prospectus which assumes conservatively that with no increase in revenue ie (the previous years
sales) and no further cost cuts other than those mentioned already, their cash will last until about the end of Q3.
So its Q4 and beyond that they need to generate 6 million per Q on average to break even for the year.
So we really have 3 Quarters to ramp up revenue to that level.
And with the job Raouf and the rest of S7 have done so far and the indication that they are going to need several more employees in the near future the writing is on the wall.
So your following post is inaccurate and is based on faulty assumptions.
From your previous post
However, another poster has mentioned that cash should be good to end of Q3 (approx 12 months from Sept 30 company prospectus). This leaves 3 months of question marks... So unless they can hit sales of $6 million per Q over the first three Q's(which could be possible), there could be some issues.
Read more at https://www.stockhouse.com/companies/bullboard?symbol=t.sev&postid=25814409#QLXqxxIbvXH6DL6p.99
Trader mentioned in his post that they need $4.5 million per quarter to break even (based on CEO) on a quarter per quarter basis... Not $6 million. I did use my numbers over a full year period.
Regardless, the company needs to show me $4.5 Million in sales then. So Giddy Up!
Any shortfall of this in Q1, rolls over to Q2, and so on.
Additional hires = additional expenses so revenue must adjust up accordlingy.
The MD & A discussion surrounding note 4 of the financial statements says that loan facility repayment starts April 1st at $270,000 per month. So I hope the cash burn rate from the prospectus you mentioned includes that. And remember... the conditions set out in the new loan state that the lender can call for full repayment at anytime (because of prior default). This amount is $6 million and would require some form of new financing or PP if called early. So the company needs to execute its plan and keep the lender people happy so early payment is not called.
I chose to sell my position because the stock has trouble breaking through the 200 day moving average, and at this point in time, exceeds my risk tolerance for this type of investment.
I take on enough risk every planting season by putting tens of thousands of dollars into the dirt, and hoping mother nature co-operates.
Good Luck to you and thank you for helping clear things up on my numbers.
FI4