RE:RE:RE:RE:RE:Green.Having looked at the most recent quarterly financial statements on SEDAR, I don't understand what numbers you are referring to when you state "revenues are now meeting monthly expenditures". It is simply not accurate and not supported by the numbers at all.
Let's look at the revenue segment of the Income Statement and see what it tells us:
First, there is a line labelled "Gross Sales". Now it's important to understand that this does NOT mean that the company was actually paid money for everything called "Gross Sales". No, what Gross Sales means in the food industry is everything that has a $$ value and is for consumer sale and which the manufacturer (Veggemo) delivered to its customer in the quarter. In this case 'customer' means a retailer or their distribution agent (eg: Sysco or UNFI). The reason why it does not equate to "the company actually was paid or earned this much money on these sales" is because of the next line:
"LESS REBATES AND DISCOUNTS". So what this means, essentially, is that Veggemo gave 'free stuff' or "discounted stuff" to the retailers as an inducement to promote the product and to improve the retailer's economics (as 'free stuff' or "reduced price stuff" reduces the retailer's average cost per unit, giving them more margin). But Veggemo never sees the $$ from this - it's just a straight giveaway. In the food industry the 'trade spend' (as it is called) is usually in the 15% of GROSS SALES range. In Veggemo's case it is $99k out of $327k, so about 30%. Ok, so 'Rebates and discounts' is free or discounted stuff that the company didn't get paid for and which no consumer has bought - it's just an inducement by the manufacturer to the retailers.
So what product was produced and shipped in the quarter that CUSTOMERS ACTUALLY PAID FOR ? Well, that line is called "NET SALES", and in Veggemo's case that was about $171,246, except that you should add-back a one time item like listing fees, which are something the company gets charged once by a retailer and this gets credited against payments owed to the retailer by the manufacturer. SO ESSENTIALLY, BEFORE DEDUCTING THE LISTING FEES, VEGGEMO WAS ACTUALLY PAID BY ITS CUSTOMERS A TOTAL OF ABOUT $284,000
Then you go and compare that number to what it took to produce the $327,000 worth of product that they handed over to customers in the quarter, and that 'cost of goods' was about $355,000. SO IT IS STILL COSTING THEM MORE TO MAKE THE GOODS THAN THEY GET FROM SELLING THEM - before even taking into account any of the monthly overhead and operating costs. THEY ARE STILL OPERATING AT NEGATIVE GROSS MARGINS. And that is BEFORE you even start to account for the quarterly overhead and operating costs which total over $600,000.
So no, monthly (or more properly quarterly) revenues are NOT meeting monthly expenditures, not even close...
Finally, I leave you with this observation: Listing Fees are levied at the START of a product being listed with a new retailer, and they very often correspond to a bunch of that product showing up on the retailer's shelf for the first time (called a 'product fill' order). So if there were over $50k in listing fees, then there is a high likelihood that much of the 'net sales' number for this past quarter was actually just new product being shipped to a bunch of new retailers. That goes with the listing fees - in fact that is what the listing fees are for: new product being put on shelves for the first time. That means, therefore, only a very small portion of 'net sales' was actually product shipped to retailers who were replacing product that moved off the shelves because customers bought it.