DTEA's Q3/Q4 2024: Losses, Cash Burn and Debt ?DTEA has $6.7 million in cash at the end of Q2 2024.
Last year, DTEA lost $3.7 million and burned $2.5 million in cash in Q3 2023, check link below:
https://www.globenewswire.com/news-release/2023/12/12/2794590/0/en/DAVIDsTEA-Reports-Financial-Results-for-Third-Quarter-of-Fiscal-2023.html
Will DTEA lose money in Q3 2024?
Will DTEA burn cash in Q3 2024? How much?
Based on the latest news, I project that DTEA will lose money and will burn about $2 million in cash in Q3 2024.
If this is the case, DTEA's cash will be about $5 million at the end of Q3 2024.
Moreover, DTEA lost $3.9 million in Q4 2023 and its free cash flow was only $900K in Q4 2023, check below:
https://www.globenewswire.com/news-release/2024/05/02/2874028/0/en/DAVIDsTEA-Reports-Fourth-Quarter-and-Full-Year-Fiscal-2023-Financial-Results.html
Will DTEA lose money in Q4 2024?
Will DTEA generate only $900K free cash flow in Q4 2024 ending up with only about $6 million in cash at the end of Q4 2024?
If this is the case, DTEA will have to borrow money in 2025, because $6 million in cash are not enough to cover the cash burn during the three slow quarters (Q1, Q2, Q3) of 2025.
These are my concerns for the second half of 2024.
Time will tell.