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Saturday, 09/19/2020 3:34:45 PM

Saturday, September 19, 2020 3:34:45 PM

Post# of 197503
$VRUS has timed the release of the BIG BANG Q3 10Q, after the end of dilution. Q3 10Q final deadline is Monday, September 21, before 5:30 PM eastern time. WHAT SHOULD WE EXPECT:

  • Q2 revenue was at 4.65 million dollars. Q2 revenue showed a 58% growth over Q2/2019 and 25% below Q1 revenue. Although that is a good revenue but VRUS promised triple digit growth. The reduced revenue in Q2 was due to interruption in international shipping and distribution due to COVID-19. Q3 did not have this problem so we expect the return of triple digit growth in Q3/2020.

  • Q3/2020 REVENUE: Based on a minimum of a triple digit growth of 100% over Q3/2019, VRUS should report 7 million dollars in revenue on Monday. But wait, that is without the $820,000 bonus due to the medical gowns sale. That should put the revenue at 7.8 million dollars or 123% year over year growth.

  • HOW ABOUT GROSS PROFIT: Q2/2020 gross profit was at 15.8% of revenue. Using the same percentage, Q3/2020 gross profit will be 1.1 million dollars relative to the 7 million dollars. The gross profit for the gowns, I expect it to be much higher at 30% or $246,000. So, the total gross profit for Q3/2020 can be on the order of 1.35 million dollars or 174% increase year over year.

  • HOW ABOUT OPERATING EXPENSES: Huge reduction in paper expenses will be reported in Q3/2020. This is mainly due to the end of warrant issuing to CEO that ended in Q2. Selling and Promotions and A&D is running at 14.9% of revenue. This should amount to 1.16 million dollars. If we use put legal expenses at $200,000, that will increase the expenses to 1.36 mil dollars. If we add salaries and compensations at $400,000, this will increase the total operating expenses to 1.76 mil dollars.

  • OPERATIONAL NET INCOME: Based on my assumptions above, the operational net income should be at -$410,000 or a loss of $410K. This is 68% lower than Q3/2019 and 95% lower than Q2/2020.

  • Assets and Debts: I don't want to comment too much on this topic. Since April 30, 2020, VRUS issued 2.8 billion shares for a price tag of at least 6 million dollars. Some of the issuance went to promissory notes payment, some to raise cash and use for investment. I expect VRUS to have a strong inventory, prepaid expenses, and cash on hand as of 9/21, which will not be fully covered in the 10Q. In addition, VRUS added Pachyderm laboratory and recently Eliot and that is expected to add to their assets today. I also expect that VRUS is in a strong position to pay and control the debt and minimize dilution going forward.

  • In Summary, I expect VRUS to present a strong case for investors of their improved business and financials during the CC. It can't get any worse after they survived the most difficult time of COVID-19.

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