RE:How do you not make moneyswyint123888 wrote: on 8.8 million in revs
DM is just a middle man when it comes to test kits or 80% of total revs....they get kits from Korea and sell them to SCRN....no overhead, no raw material costs or processing expenses it's all fixed costs
Are they losing money on kit sales....did rent go up, did wages rise, maybe hydro went through the roof......to lose 1 million on this kind of set up is concerning to say the least.....on the surface it has the appearance to stay competative in the kit sales arena they are doing it at a loss.....can someone explain to me how they could not make even 100 bucks on 8.8 million on extremely minimal overhead....never mind buring 5 million in cash in 2.5 months
Keep in mind they are not tied to commodity price increases by what I can tell
I think someone already beat me to it, but it can be likely that the company bought additional covid tests that they needed for testing and put the expanses for Q1 purchases in Q4. The company was already going to have an oustanding financial result, so why not buy what was needed for the next quarter.