$40M revenue per quarter needed to BREAK EVENQuite a long road ahead of these guys in order to just break even, let alone turn a profit.
One thing to stop cash burn, another thign to pay back the $85Mdebt that is coming due in 18 months from now.
How did I arrive at the $40M per quarter?
Operating Expenses: $15.3M per quarter
Other Expenses: $4.9M per quarter (to service debt)
Seeing that their current margin on products sold is approx 50%, they will need to sell about $40M per quarter to break even.
These guys are struggling to get past $12M. They have $46M of product in inventory at the end of Q3 that clearly shows THEY CANNOT SELL PRODUCT!
It seems like in Canada there is a greater demand for SH1T product than there is for high quality product. Let's face it, Supreme picked the WRONG strategy to focus on high-end product as clearly there is either NO DEMAND, or THEY CANNOT SELL. I pick the later of the two.
Best hope for anyone invested here is they sell the company.