Of course....LOL. I deal in facts. Here is the transcript from the August call that back references his statement...and aligns EXACTY with what I just said.
Okay, next category, there’s four questions in this category. “Do you still expect to be cash flow positive by the end of 2019? If so, can you provide specific details regarding this?” Next, “Do you believe that this offering will be the last one needed and that future revenue will be able to cover all costs?” Next, “Is there still the possibility of being cash flow positive or net flow positive this year?” Next, “Rory said that Verb would be cash flow positive by end of 2019, but the AGT report aims for quarter two 2020 to be cash flow positive.” Then, in all caps and three question marks, “WHO WAS RIGHT???”
Okay, so, let me explain how I look at growing a business.
We’ve now got a business that is generating approximately $1.3 million a month, on a fairly consistent predictable basis. With that kind of revenue coming in, I could probably get the Company cash flow positive next month and pay ourselves big salaries and lease expensive cars, take longer vacations, and live large. But I’d have to cut 90% of the development team, many members of the sales team we just hired, most of the new product team, our marketing, our advertising budget, our acquisition and strategy teams, among other cuts. We’d have a cash flow-positive company that actually deserves the stupidly low market cap that we have today. But that’s not what I invested my money in, and my time in, and that’s not what the team we have that’s worked for a long time, mostly for shares of stock, invested in, and I just don’t think any of you invested in that type of business.
Okay, yes, I’m being facetious. But I want to paint a really clear picture of what it takes to create a big business. I mean, a really big business. That’s what we all want, right?
Yes. You manage your cash, but once you begin generating revenue and you have a solid plan for growth that’s working, then you continue to invest in it. You invest in its growth. Our job as Management is to strike the right balance between feeding that growth and not running out of money.
Look, we didn’t just start yesterday, and many of you guys have been with us for a long time. You know that we manage our cash very well. We’ve kept this business on track and moving forward through very difficult times, before we even had a marketable product, before we had any revenue. I hope by now we’ve earned your trust that we know what we’re doing.
Look, when we first started, and the road ahead was far more daunting than it is today, people asked, how you going to make it? I used to say, look, we got this. I haven’t had to say that for a while, but honestly, we got this. Okay, so, yes. Go ahead and chalk that one up to a forward-looking statement, for those of you keeping track.
Fact is Rory got ahead of himself and made a statement in May that was simply wasn’t possible. Either he knew that and lied OR didn’t understand his business.
