RE:RE:RE:RE:RE:RE:RE:Endless posts Look at these things:
- Inventory line more than tripled from ~160k to over ~500k in the last qtr/qtr
- Cash would have been impacted negatively by 2M if not for three things. See the cash flow statement. See how they raised 1.2M for share based compensation. They were able to get accounts receivable paid into 700k cash which is a one time thing. Then look at note number 8, which is they had $400k holdback that was due and decided to issue more shares to pay that bill than to use cash.
Also look at the covenants around their loans on Note 11. Those are strict leverage covenants that hands the keys to the kingdom at low levels of any sales issues and EBITDA declines. And the debenture holders were nice enough to extend by a year. See note 9 for that one. This also explains why they can't issue any more debt. Those are very restrictive covenants and any cash flow issues, debenture payments, etc will have to be paid in shares. That means more dilution. There is no additional debt financing available.
Be careful here. Seriously.