Post by
kaykay22222 on Mar 21, 2023 4:22am
Again regarding financial statement Q1
Yes, we made a net loss of $1.1m. But when you look closer $500k was non-recurring M&A and Setup costs and $600k non-cash relevant costs (shares, amortization, ...) So we pretty much broke even on the worst quarter ever (mortgage rates 7%+ and no inventory) - Also current assets $2.7m vs current liabilities $1.5m (the current portion of long term debt of $3.5m is misleading, because it will be rolled over in Dec) - so net working capital of $1.2m against a real cash burn of $100k-150k. So we should have liquidities for the next 10 quarters. I don't talk about better revenue situation when the market pivots or cost initiatives that are underway.
Comment by
kaykay22222 on Mar 21, 2023 9:37am
Ever heard of seasonality of the housing market? Oct-Dec is worst quarter. So they broke even during the worst quarter. $80-100k more interests per quarter won't hurt their business
Comment by
kaykay22222 on Mar 21, 2023 9:45am
Also wages of $1.5m per quarter, hosting fees, Homevisit headquarter rent, ... will come down gradually due to synergies. $800k direct fees will come down when they transition editoring business from Vietnam to France.
Comment by
Torontojay on Mar 23, 2023 3:59pm
The company has to execute. Hopefully, they can weather the storm and survive which I believe is going to be a tumultuous year. The turnaround can begin in 2024 when the storm will likely be in the rear view mirror.
Comment by
kaykay22222 on Mar 24, 2023 5:55am
Of course the risks are real. But it's not as grim as you suggest.
Comment by
kaykay22222 on Mar 24, 2023 5:57am
Also bond rates are going down, and 30y Mortgage rates made a double top, because they follow the 10y + small risk premium. When Mortgage rates are between 4.5-5% we will have much more home sellers.
Comment by
kaykay22222 on Mar 27, 2023 5:24pm
Amortization is non-cash payment and poor Bs. They have positive working capital $1.2m. The debt will be rolled over with discount in interest compared to CCC bonds, etc.