They haven't hit bottom yet. Revenue has been completely flat for the last 4 quarters now. This quarter was only 15% above what they did a year ago; all other quarters have been lower. Q4 historically is their worst quarter.
Even though they had a sales bump, did you notice the discounts and allowances? Compare the 3-month number with the 9-month number. Almost all of the discounts and allowances are from the current quarter. I think Q4 will be even worse.
Cash went from $1.1 million last quarter to $500K this quarter - better than I thought they'd do, but it's clear that they're out of money again. Their accounts payable are on the rise because they can't afford to give up the little cash that they have. And expenses are out of control - another $3 million loss.
You say that they have GMCR as a partner, but they don't - remember that they mentioned Bevyz. They can write this because at the close of the quarter, Bevyz was still independent. We have no idea what GMCR will do with Bevyz. Maybe they'll rebrand the machine; maybe they'll incorporate Bevyz's design into their own product. Maybe they're going to scrap the machine. But in any case, deals that companies had with Bevyz are no longer valid under the new company.
Remember a year or so ago they were listed as a Best Western preferred vendor? People here were multiplying the number of hotels by the number of rooms and coming up with wild numbers for revenues. In the end, all of that came to nothing.
Remember that AVTC said that they'd have 1,000 Marley Coffee machines out in the market in 2013? It's the end of 2014 and I think about 70 machines were made.
