Take aways from the 10K:
1) Delay probably caused by accounting for discounts, returns, etc, This was the first annual report that required an extensive analysis of their sales policies.
2) Very significant building of marketing infrastructure, which will yield huge continuing results.
3)Key officers, sales and marketing personnel, etc primarily compensated on a performance basis. Just what is desired for a marketing oriented company.
4) Losses due to a) build of marketing effort, b) stock incentive compensation to key personnel in company building roles
5) Margins of 63% due to sales and marketing build and projected expansion throughout 2017. Most companies would leap for joy with 63%!
6) There may be need for a small capital raise unless sales have accelerated in 2017 and continue to accelerate. But the company has been very conservative in preserving their low share count and has relied on loans from officers and small raises in the range of $100k to $200k. Not a major concern
7) Several research efforts ongoing with existing products and new products to build the pipeline. Funded by the researchers. Gotta love how the company does a lot with a little!
There is a lot to like about this. We await announcements on revenue generation. Even moderately positive and the s/p will launch.
