APT MotoVox Group Inc. (MTVX)

[bullethole27]

Just wanted to point out.

In the interview Troy Covey stated that the non-revenue asset sale would be applied in such a way to reduce Operating Expenses by 1/3. Ignoring professional fees, operating expenses are currently 800k. This would be a reduction of 266k per quarter. If you do not ignore professional fees it would be a reduction of 450k per quarter.

Professional fees should be reduced in the coming quarters as the 10-Q mentioned that they were high due to the merger. Professional fees were 463k so there is likely room for up to 300k reduction which I would expect to see in Q3 not Q2 (just a rough estimate).

The 10-Q also contained expenses from the old FROZ which were at 100k as of the last FROZ filing. The old FROZ had 0 revenues so that will be 100k of expenses that comes off of the books next quarterly report.

All told that could be reductions of 366k to 850k in operating expenses in the next two quarters. Total operating expenses were 1.35M. This reduction should be offset somewhat since the company can now produce at full capacity with the lockbox gone. As a result there will be more people working and more supplies needed meaning higher labor and production costs. However those costs feed directly into sales for which the company has a 42% gross margin! All this means that their goal of becoming profitable in 2015 does not seem so far fetched when you take a closer look.