Amfil Technologies Inc (FUNN)

[User-65225]

That is the wrong way to read a balance sheet.

They borrow on the inventory, then cover the debt when they sell them... and they are blowing games out right now, hence the rapid revenue growth... They have had 7 figure orders from the biggest retail names

This is GOOD debt because it allows them to fulfill/profit on large orders without having to have the cash available to buy the inventory upfront, which would be millions. They can use their cash elsewhere, like building location #3, GRO3, franchising infrastructure, etc.

This is perfectly healthy for a distributor dealing in high volume... I expect their inventory debt to rise even more in the future, along with revenues and profits.