What has changed? I would say quite allot.
1. Revenues did increase. 8% Q2 over Q1 and 6% Q2 2015 over Q2 2014.
2. COGS has decreased significantly over the past four Qs. Gross Margin was a horrendous 86% in Q3 2014, then worse at 88% in Q4 2014, but down to 53% in Q1 2015 and was all the way down to 48% in Q2 2015.
3. D, M & A expense as a % of sales decreased. 19% in Q2 compared to 31% in Q1 and compared to 44% in Q2 2014.
4. S, G & A expense as a % of sales decreased. 72% in Q2 compared to 176% in Q1 and compared to 160% in Q2 2014.
5. Interest expense down. $26M in Q4 2014, $32M in Q1 2015 and down to $14M in Q2 2015.
So if you listened to the conference call or read the summary that was posted here, you can also anticipate increased revenues (three strategic drivers that are focused on distribution and how they will go to market).
Factor in addition cost saving initiatives and their bottom line will continue to improve.
As for the warrants, nobody exercises warrants (pays the company $0.45 per share) unless the pps is above that. Are they going to get out at $0.46 and make $0.01 per share (a 2% return) or would they wait for a higher price? Based on who the warrant holders are and the fact they know more than retail investors (us), I would be very surprised if any warrants were exercised when the pps is under $1.00. With that said, cash is king, so some warrants could be exercised under that price but not many imo.
