You have an interesting position on this company.
My first thought, after just a quick look at their financials:
- Revenues down 20% – yes COVID, so take it with a grain of salt
- A Net Loss of over $5.6M
- Short-term Debt of over $8.4M (an increase of 41%)
- Cash-on-hand of just over $208K
- A 3-month revenue average of just under $60K – It is nice to see revenues cover COGS and operational expenses but it will take some time for $60 a month to put a dent in that debt.
I wanna steer way clear of it.
Still, you make a compelling argument. My only concern is the potential for them to back out and getting stuck long-term. Then I’ve invested in a company that, on paper, looks very scary to me.
Because it’s not set in stone, and their numbers go against my investment plan, I think I’m going to pass. Now, if I was a client of theirs and liked their products, I could see the perk as me simply updating my wardrobe, and then if I happen to make money, great, but I’m not in that position.
