RE:RE:RE:RE:RE:FQ2/20 in Line with GuidanceAgreed Trans, there is also the gain realized selling at retail vs wholesale that will pay for costs but more important is the QC right to the shelf/customer....the CPG system is great in the urban areas but there is a big online market and not only for the rural/ small town clientele, there will be plenty of customers but they have to get that procduct out and available.
You can tell by sales volume and inventory that they have very little product out in the market, that has to change and it will whenthey get the packaging system fully up and running, this quarter they say. We need to see the sales to start showing the progress intended....there is a lot on the proverbial plate for this company but I think these guys will get it done for themselves and for those that own, JMHO...Opt
theTransporter wrote: Cash burn will be drasticaly reduced with the completion of the facility (no more cash going to pay for any cap-ex) combined with general and admin expense reduction through staff reduction and internal cost savings.
For example in the last 6 months they spent $30M in facility construction. Assuming $15M per quarter, that is now $15M less expenses coming out of cash for the current quarter.
I estimate without any further capital expenditures, they will need to produce $28M in a quarter in revenue to break even, that is without the reduction in salary costs from the staff reduction. It is unknown the impact that has on the Salaries expense until we see a full quarter of that his the books which won't be until Q4.
They have the production capability to do double that in a quarter, let's see how well and how fast they can achieve that.