potential increase in bad dept?, page-20

30 million in revenue from a transaction volume of $403
Bad debts of 1.79%. By my reckoning 1.79% of transaction volume is $7.2 million - or 24 percent of revenue, and that's based on the current margins.

If you shrink the margins (with the new products or competition), then revenue as a factor of transaction volume decreases, while in a recession bad debt may increase.

Exponential growth, while maintaining margins, would certainly see this company become profitable - but in my opinion neither are likely.

Another enhanced risk is raising capital in a recession. That's a lot of risk for a company that doesn't make a profit to navigate.