Jammin Java Corp (JAMN)

[Brophtron]

To figure out their cash position, you just need to look through their financial statements. When they got the $4.5 million for Ironridge, they were behind on their accounts payable. That cash lasted about a year and 6 months ago, they got $2.5 million from Mother Parkers. They were pretty much out of cash at that point because the quarterly report said that they had just under $2.5 million.

In the last quarterly report, they had $1.1 million - so they already spent $1.4 million of what they got from MP. Assuming that they spend about $1 million in cash per quarter (accounts payable can offset what they need to actually pay for some time), then by this Friday, they should only have about $100K in cash, which is 10% of what they need to get them through the next quarter.

What if, and may be a big one at that, but what if they are finally receiving enough revenue to at least break even if not profit some.

Let's run the numbers.

Last quarter JAMN had revenues of $2.078 million. Their gross profit was $495K. They had expenses of $3.5 million not associated with cost of goods sold, so they had a net loss of $3.015 million ($400K - $3.5 million). In order to break even, they would have had to have a gross profit of $3.5 million (the same as their costs). In order to get that amount of profit, they would have had quarterly sales of $14.734 million. That's just over 7 times what they had. A year and a half ago, they sold in 500 stores; now it's 5,000 stores. They're in 10 times the stores, but sales only went up 300%.

And sales for the last 3 quarters have been flat. We're going to have a quarterly report where they won't be able to say that sales went up compared to the prior year.

This has to be the goal to turn a profit.

For the shareholders, sure, but it doesn't matter to Rohan and Toevs; they get money from the private companies of Marley Coffee.

At some point revenues have to prevent further dilution. If not they would not be in business.

Exactly!