Coca Cola Cost Optimisation, page-4

The problem with this example is that its not reflective of how Vivid does business. Under its "save and share" strategy, Vivid needs to up-front a large chunk of the net $5.5m installation cost, and then receives payments dribbled over the ensuing years. This is why it keeps "receiving orders and making sales" but keeps burning cash. It will also need to fund NCF for the foreseeable future.

In fact the example is so misleading that it implies Vivid would receive the best part of $7m making just one sale of this nature, yet the company claims to have made several sales but is about to deliver consecutive sub $5m revenue years.

Until the company is reliably cashflow positive, it will always trade at a "cum-capital raise" discount.