That's not very good news. Let's assume it's a low ball estimate, and demand is now 20% higher instead of 6.2%. How much will that help SIMH ?
Well, we'll do a bunch of rounding to help them. We rounded from 6.2% to 20% for sales increase. Their recent quarterly profit was $44,000. We'll round to $50,000, so $200,000 for the year. That's also assuming all profit comes from thermometers, which we don't know.
Multiply $200,000 x 20% increase = $240,000 profit for the year.
Now look at their current liabilities of $5.8 million. And whopping Operating expenses of $633,000 per QUARTER ! or $2,532,000 per year !
Even 900 % increase of profit from $44,000 per quarter to $440,000 qtr is $193,000 short of covering the operating expense of $633,000.
Quarterly
-----------
Total Assets: $173,000
Total Liabilities $5,888,000
Gross profit $60,000 (Next year generously rounded projection)
Operating Expenses $633,000
