RE:RE:Confused - Q3 Gain or Loss?YodaLayhehoo wrote:
They changed the way they did their accounting a few quarters back when their new accountant joined the team. Not sure if they're required to report this way or not. If you are looking at the company in present terms, If you remove capex and only look at opex the picture us not as bad as it seems. Opex sits at about 4.2- 4.5 million they're making 2.4 million now growing 40% a quarter average. They'll be at 3.5 next quarter plus whatever Bedrocan brings to the table. Then 4.9 million the quarter after that. Even if they burn 8 million a quarter building more they'll still have some breathing room. They should be opex cash flow positive in 6 months If you think they'll need more cash before then that's your decision. The only dilution I see coming is if they acquire an oil extracts company which may not be a bad idea. It's either build a larger extraction machine or aquire someone. All that being said all of their biological assets are as good as sold if you think legalization is coming in the next year or so. I was also concerned aboit more dilution finally had a chance to dig into the financials and it's looking positive and I think it's why we saw the share price shoot up after they were released.
Interesting points, diversification is probably a very good goal. It's very difficult to get a handle on how to interpret this income statement. Reporting .05 EPS is really bizarre to me, but this is a Venture company after all. You seem to be very bearish on this company as well. As for the comment on the short position, going by these financials they'll likely be back soon, and in greater numbers.
