Vmoto and Social Media, page-1338

The massive drop in the completed units business sales would mean the fixed part of the costs would be spread over less sales which could push them into cash losses.

The parts and other products business is in the ramp up stage and will make cash losses until it reaches critical mass.

They specifically mention the costs associated with the UK and French distribution businesses which were loosing enough to send their owners into liquidation. The fall in sales in those business would be an issue.

Whilst its great to own them for the good times they are a drain on cash at the moment. Selling to distributors which others own fixes the distribution cost to a percentage of sales which is great risk management.