Cash The company received the investment from Eric Sprott and has money in the bank, I would assume about $10 to $11 million at this point. This should last them for about 12 months, given their historic losses of about $10 million per year.
in the case the company is able to obtain orders, their working capital requirement would increase significantly. Given that they manufacture their units, I would assume that the need about 20% to 25% WC. Implying that for every $10 million in sales they need about $2 to $2.5 in cash.
further assuming that they should be able to generate a gross margin of 30%, which for this kind of equipment would be normal, they would need about $30 to $40 million in sales to be profitable, and about $8 million in working capital.
at this point the company does not have the cash to become profitable and will need to raise more cash. GLTA