By the numbers I really like their prudence for deploying capital right now. Especially considering this incorporates the ontario leases on the books which we know now was a great plan to hold these through the storm.
As it stands the companies burn rate (9 months) has been 7,304,831. Divide by 3 and you get a quarterly burn rate of 2,434,943.67. And this isnt operating expenses, this includes capex spending.
That being said, current cash on hand for the end of the period is 3,893,233.00. That means that even with the current runway on capex spending they have enough to cover the quarter ending december 31st, with an additional 1,458,289.33.
We're on the cusp of profitability, and with margins continually improving as we approach 2.0 sales I can see this being a quarter or two away from reaching that inflection point. Even if they opt do not deploy corporate stores in Ontario at first, they have enough cash on hand to have 2 or 3 franchise locatons open.
Now if they scale back capex spending, and factor in that they have over half a million on loan to frachisee's at the moment, we're looking at a burn rate of 5,295,933 / 3 = 1,765,311 per quarter. This leaves us with 2,127,922 in cash on hand. Which is ample money to bring in a ton of 2.0 inventory, and a few extra sheckles to build out one of the lease locations for a corporate store, or help several franchisee members get up and running.
This is all without having any dilutive measures. And doesnt take into account any warrants or options being nibbled on.
I think we're in a great position to strike while the iron's hot, and think ill be adding to my position on payday. Even with them saying they dont think the current share price reflects the enterprise value, I think we're easily a 18 cent stock in these market conditions. Would love to see more buyers show up, we've got good volume, but a few minor walls to hit at 0.12 and 0.13.
Long and strong