Generation Next Franchise Brands Inc. (fka VEND)

[Officiousintermeddle]

If they meet that target, it looks as though they will make the high end of their estimate for the balance of the current fiscal year, generating somewhere between $1 million and $1.4 million in gross profit for the fiscal year.

The size of the loss for the current fiscal year will depend on any cost-control measures adopted. Absent any savings, it looks like the reported loss for the year will run at about $18 - $19 million.

Turning to the first six months of the next fiscal year, their projected revenues look as though they would produce gross profit of maybe $2.4 million at the high end, and a projected loss for the six-month period of at least $7 million.

So, it looks as though they will need to:

1. Reduce costs dramatically;

2. Start selling those $58,000 kiosks they are signing up instead of the multitude of $38,000 sales they have in their pipeline;

and

3. Raise a whole lot of capital, something like $15 - $25 million in a worst case scenario.

I was going to say that they need to do one or more of these things, but I think they need to do all 3.