The two reports make no sense in a commercial context.
What we're being told is that they sold about 16,000 cases (interpreting the pre-school quality chart in the "update") on revenues of $627k. That equals $39.19 per case. That seems about right given a case is probably costing them $30 to purchase (excise paid). So product gross margin is probably about 23%%. Based on my knowledge of contract brewing, this would be about right.
Not so, according to the cash flow. They had Sales of $627k - less Cost of Goods Sold (COGS) of $564k = $63k margin or put simply, a 10% gross margin, or even simpler, $3.94 margin per case sold.
With Operating costs of $1,116k (assuming the government support is not continuing and quarterly expenses remain static), they would need to sell 283,250 cases per quarter, just to break even. That's almost 18x the current sales volume.
Put simply, BEE is losing about $57.13 on every case they currently sell.
Can someone check the math because it all seems to defy commercial logic. The only sensible conclusion I can draw from this is to stop doing what they are doing - in fact, doing nothing would be a more profitable enterprise.
BEE Price at posting:
1.0¢ Sentiment: None Disclosure: Not Held
