RE:RE:RE:RE:RE:Dilutionhrgoyal wrote: My 2 cents on interest rate: there was 3.1M interest paid in Q3. The existing prime rate is 2.45%. If fed increase 0.25% from March to 1.0% by Dec, average increase for 2022 will b 0.5%. So prime rate will go up 2.95% . This is 20% more interest, so 0.6M per Q IF all interest payment is on floating rate basis. For 100M revenue, 0.6M additional interest should not b a problem.
They paid $2.07M in interest on loans in Q3 (Note 7) and they had $311M in debt as of Sept 30 2021, which makes for an average rate of 2.7%. If rates increase 1%, then that would mean $0.8M each quarter. Considering their net operations (including working capital changes) resulted in $8.1M of cash for Q3, that extra interest is easily covered by operations.