RE:RE:RE:RE:RE:Riddle Me This… Riddle me this??? Have any of you really done the math on what it will take to break even this year on a high burn rate, added staff expense, inflation on material costs, supply chain challenges, cross border import/export/delivery, production, sales & marketing staff’s 6-month ramp up (7 to be hired per website), and more
Best option #1 is get acquired or #2 round of investment (big dilution). Either way stock drop, then could rebound with market... but deep dept by end of year without 1 or 2. It's a good company with a good mission and product; one that’s challenging the status quo and new entrants (Evolv, SCAN, PRT). Just needs a new infusion of $$$
Numbers don’t lie…
Historical
- FY 2019 Revenue $1.5m
- FY 2020 Revenue $2.1m
- FY 2021 Revenue $1.1m
FY2022 Start (1/8/2021)
- Total Cash Balance 31/7/2021: $9.65m
- 1st Quarter End 31/10/2021: ($3.2m)
- 2nd Quarter Start 1/11/2021: $6.5m
Adding Jobs:
FY2022 End (31/7/2022)
- Est. Annual Burn Rate: $14.5m ($12.8m+1.7m) - and doesn't include huge outlay for production ramp up.
- Current Cash: $6.5m
- Cash Gap: $8.5m
Breakeven 2022 Sales Revenue.
- $17m (assuming 50% margin)
- YoY Revenue Growth 1550% (what company has done this recently, and in a pandemic?)
4 ways this goes….
- acquisition (my bet, my prediction)
- fundraiser / dilution - 100m shares at $0.25/share (total 250m outstanding)
- Loan at high interest rate
- —————
My pony is #1... "Acquisition Baby"