Luxor Industrial Corp. V.LRL

RE:RE:RE:RE:More detail for Q1

[mjh9413]

I might accept some of your arguments for imrovement in margins but if you have a pipeline to mgmt perhaps you'd ask them the following as they directly impact margins. How the Raw Materials costs included in Cost of Sales ($886K Q1) will be dealt with in future qtrs (that is, is there a ratio of raw materials to contract size that we can rely on to assess impact on margins....of course, lumber prices will fluctuate but there must be some kind of relationship?). Also, how proportionate will be the Direct Labor Costs (again, found in Cost of Sales) given they were $663k, $490K and $802K in Q3, Q4 and Q1, resp. Another large Q1 item was Wages and Benefits (NOT in Cost of Sales) , being $253K in Q1 versus WY 2015 of $203K. (Have you read the components of this latter category?!) And again, will those new Consulting Fees be repeated in any size.
You might want to consider that in 2015 they capitalised $522K, most in Q4 ($311K), which must have included some of the expansion costs (Leasehold Improvements.)  These will be repeated through to the July opening of the new facility and clearly, while not impacting P&L except for depn, they are a significant draw on cash.
Do you see where the loan assumed from the MF LLC acqun has been placed?