RE:RE:What is a packaging project? 1000 stores, are they 7-Elevensonthepath wrote: Could have a million stores but what's the point when the company loses money and sais it will continue to lose money. Huge risk in the current environment...nothing to fall back on. $94 million deficit.
Frog likes to post about 1000's of new stores that might be added. The big problem with that kind of expansion is that it requires money to finance it. TAAT does not have the money they would need to finance the inventory and operations for that many stores. It's not going to happen. It sounds like more overpromise and under deliver from this company. TAAT's cashflow is negative and they are using far more cash for operations than they are generating from operations.
Expect very limited order delivery to stores going foreward. TAAT does not have the cash to finance a big order volume expansion.
Do the math: In the first 3 Quarters of 2022 TAAT had a cash burn of $2,175,628 per month, At the end of Q3 TAAT had an ending cash balance of $2,625,816. Since Q3 ended at the end of July which was 3 months ago, TAAT's cash balance has to be negative.
IMO: They don't have enough cash to finance their ambitious expansion plans and their plans will fail.