I think you're missing the bleeding obvious here. Hope will not...

I think you're missing the bleeding obvious here. Hope will not save this situation.

They generated $1.8m of revenue at 43.5% margin. This means the COGS was $1.25m. But they only spent $319k on manufacturing due to underwhelming sales and being significantly overstocked.

Fast forward to an ordinary month where they would have to replace the sold inventory and the $319k figure would be about three times as large or around $1m. This would lead to an ordinary month producing a $500k cash burn.

Then you need to factor in other misleading numbers, like not paying key staff any wages.