Jammin Java Corp (JAMN)

[Brophtron]

It's not "my" break even point. And if their gross margins were more consistent, along with fixed costs, then the break-even point wouldn't fluctuate.

Bro has lowered has lowered his break even point for Jamn several times and still cant see they are going in the right direction.

It's not my break-even point - it's a simple calculation. And although the most recent number has gone down from $13 million to $12 million per quarter, there are several important things to remember.

A few years ago, their break-even was $12 million in sales per year - they now need 4 times the sales that they did in order to break even (they increased costs too quickly).

Cutting expenses

So far they've cut expenses for a single quarter; the next quarterly report will show quarterly expenses back to $2.5 -$3 million.

Growing revenue.

Revenue isn't growing that much. They had decent growth in 2013, but they really coasted in 2014 - it just looks bigger since the first quarters of 2013 are smaller. Look at the last 4 quarters reported. 2 quarters at $2.5 million and 2 at $2.1 million. Growth has slowed to a crawl.

And lets remember all this was laid out by Brent. He had said there were going to be large expenses initially to set Jamn up for Huge future growth. Its not like it was a surprise. He has been very close to all his targets.

He was off on revenue for last year and overstated by $1 million; I was actually closer. For this year, he predicted $20 million then cut it to $17 million. Right now they're on course for $12 million and that's my number.