Looks like another buying opportunity.
They just reduced debt and the A/S, and then the insiders start converting their prefs around the same time. May be shady, but could also be opportunistic on their part.
They KNOW what's in the pipeline, we don't.
But, let's play with some numbers:
7400 locations (allegedly, but let's go with it)
1 unit sold per week, per location (ignoring online for now)
370,000 = 7400 * 50
$70 - Blended sales ($99 retail, $60 wholesale)(IDK, just a guess here)
$25,900,000 Annual sales = $70 * 370,000
$35 Margin (about half of sales)
$12,950,000 = 370k * 35
PPS $0.00255 = 12,950,000 / 5,073,788,021
So, what's a reasonable multiple, 10x? Move the decimal.
PPS target = $0.0255
Of course this assumes a singular look at the grinder and does not take into account any corks or liquids or online sales or future expansion into places like, um, Jamaica? There is also the hype surrounding a new product launch and fresh $ piling into a startup, offset by the wildcard of future pref conversions.
Anybody have a different model they are willing to share?
And what's up with A/S still listed at 15B?