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Re: sharky post# 40598

Monday, 09/14/2015 10:19:33 AM

Monday, September 14, 2015 10:19:33 AM

Post# of 74601
What exactly do you expect to see in mid-October? The next quarterly report will not be out until mid-November and will only cover sales through the end of September. Realistically, you will not see the results until Mid-April 2016 when the 10K comes out.

Assuming for the moment the dolls are shipped in time to show up on the November quarterly report. From what we know, the company is expected to record $850k in sales sometime soon. As has been the case since inception of sales, the gross margin after cost of sales is nearly negligible. However, giving them credit for a volume order, let's assume for the moment they make a hefty 30% gross margin - this would result in $255k take home to brag about.

Now let's look at the ongoing and potential expenses AFTER cost of sales to produce the product:
1. Tonner's agreement calls for 5% of the gross purchase order to be paid to him - or about $42k (or about 17% of the above gross margin).
2. Current Interest expense is $452k per quarter
3. Current G&A, R&D expense is another $459k per quarter
4. LG Capital default judgment for $296k
5. Darling Capital judgment for $58k
6. WHC Capital lawsuit for $416k
7. Gel Capital judgment for $98k (just paid off?)
8. Debt settlements?

So factoring in all of the above, please explain what will make October so stellar?

Remember - it was never about the dolls....