Ventura Cannabis and Wellness Corp CVHIF

RE:To choices

[Xiawen13]

My calculation is very similar but with a more optimistic conclusion

we have net revenu of apprx 4,3MIL from the 4 facilities and expenses of 4,5 MIL (not including startup cost) so we would be basically even at this stage.

but we aleady paid for the next five facilities start up cost. They will also bring min 55% net revenu so i dont see how mathematically we could not be profitable on Q3 

theinvestor22 wrote: You have estimated the amount of cash flow that CXV can produce in calendar 2017, then translated that into potential new facility openings.  I'm in "show me" mode re the actual cash flow they can produce but, quite apart from that, they'll need a lot more working capital to operate new facilities, which you haven't factored in.

Here's the working capital reported in the financials since they went public.  I've removed the cash and restricted cash, because it gets in the way of seeing just how much they really need to operate.

Period     Working
Ending     Capital (excl cash and restricted cash)

Feb15        205k
May15       393k
Aug15     2,201k
Nov15     2,754k
Feb16      3,446k
May16     4,499k

(You could argue that the Nov15 and Feb16 periods are a little high because of overstated A/R.)

Now, add something back in terms of outright balance sheet cash needs (perhaps a couple of million dollars?) and you'll get a feel for how much extra working capital they'll need going forward.  I'll leave it to you to quantify that, but you can see that a substantial amount of your "virtual" cash flow will be eaten up in working capital needs if, in fact, they produce any material cash flow at all.

I'd like to think they can but, like I've said, I'm in "show me" mode.

I just don't think they'll be able to open the number of facilities you think they'll be able to open.  I would love to be wrong.  (Note: I'm sure there will be one time costs from time to time not included in the above.)