They are a dismal set of results...
Consider this.... The company only received $304k of revenue this quarter. Let us include the additional $240k of revenue they received in January from Costco and EPCO.... This brings it up to a grand total of $544k...
NOW have a look at the cost of product manufacturing and operating costs... $847k.
So essentially, it costs the company $847k just the manufacture the goods they sold for $544k. So for every $1 they sell, it is costing the company $1.55 to produce!!!!! and this completely excludes all the other costs associated with the operation, including:
- Advertising - $22k
- Staff Costs - $315k
- Administration and Operating Costs - $407k
If you actually look at what it costs the company from end to end it is quite shocking.... Consider based on the above numbers, for every $1 CGB make in a sale, it is actually costing them $2.92...
How long do you think the company can sustain this type of operation? If this company want to stay in business (without further sticking their hand out for another capital raise, or further diluting investors without private capital raises) that needs to be one hell of a cost cutting exercise, to essentially try and reduce costs by two thirds of their current costs!!!!
Some food for thought people! Don't get suckered in by headline numbers, and actually read what the numbers are telling you...
