RE:RE:RE:RE:Convertible Debentures $200,000 CADAbsolutely nothing wrong with spending $1.2m less and 'only' making $100k of additional revenues. That's a net +$1.3m to net income. And for a company that's as small as StageZero, a company that currently generates such a small amount of revenues, that a massive change.
I doubt the company is cash flow positive. Can't see it being so until mid-late 2023 the earliest, if, and only if management brings in significant new business (revenues).
StageZero did not buy Care 16 months ago. While the transaction was announced in April 2021, it did not close until September 2, 2021. Therefore, it has been slightly under 1 year (by a few days) since the acquisition.
Care probably made $4m a year before acquisition, but prior to Covid. I say this because Care contributed $1.2m of ‘clinical consultation’ revenues to StageZero in 2021 (September 2 - December 31). And as per the 2021 audited Financials footnote, StageZero "estimated that revenues would have increased by $2.2m if the acquisition had closed on 1/1/2021". So $3.4m revenues during 2021.
Now to the $4m of revenues annually. As you may recall from the filings on SEDAR, there are contingent consideration associated with the Care acquisition (8m shares). For the prior owners of Care to earn this contingent consideration, Care needs to generate $4m of revenues during any 12-month period up until 12/31/2022. And from the financials StageZero had filed with SEDAR, the revenues contributed by Care since acquisition has been $2.97m - i.e., $1.2m in Q4 of 2021, $886k in Q1 of 2022, and $885k in Q2 of 2022. So only $1m in revenues during Q3 of 2022 to get to the $4m.
Should Share Price be where it is? No, it should be between $0.50 - $1.50. Current performance is directly linked to management’s performance. It appears as if management is finally becoming organized, at least to me. Time will tell.
Liked2Think wrote: so you see nothing wrong with spending 1.2M less but only making $100K more?
To me it just looks like they were spending like no tomorrow, realized they werent making enough money and have been in cost cutting mode even though they admit you need to spend money to get this thing to work and market it.
you have no idea if the company is cash flow positive or close to it. you would have no way of knowing. All these "calculations" people are doing to try and figure out why they didnt need more money sooner is worthless. Its equivalent to the guy that used to put down the massive lists of how many tests if they did them and how much money they would make.
hey do all the calcs you want and forget that Tripp said CARE made $4M a year when they were bought 16 months ago and how that math doesnt add up. I wont trust a single good thing posibility until Tripp proves what he says is actually true because so far he hasnt at multiple points.