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Re: None

Monday, 05/18/2015 8:44:39 PM

Monday, May 18, 2015 8:44:39 PM

Post# of 17001
Regarding the prediction of breaking even by year-end.

I haven't done this one in a while. In the last quarter, JAMN had net revenues of $2.2 million, COGS of $1.937 million, for a gross profit of $247K.

Their General, Selling, Administrative expenses were $2.657 million, for a net loss of $2.4 million.

Now let's say that their General expenses are $2.5 million in a quarter, and let's say that their gross profit margin is just under 22%, as was noted in the last quarter. So break-even is easy to calculate - they'd have to have $2.5 million in gross profit, and at a 22% gross profit margin, that means that they'd need revenues of $11.434 million for the quarter in order to break even, or over 4 times what they're currently selling.

In the last year, JAMN had only 1 quarter that was more than Q3 of last year, and that quarter was only 15% more how are they going to increase sales by a factor of 4?