The update says that Malibu placed an order (which means supplied a $35K Purchase Order) which means that Dryworld has received, or will shortly receive, the funds. If you look at the site for Malibu Triathlon, it states that delivery of orders will be on race weekend (Sept 30th and October 1st), but I doubt that means the kits purchased for staff and participants. Who knows, maybe they needed much of the $60K for the RegA sale in January to premake thousands of items for the Malibu Triathlon. This $35k could be the first payback on the $60K RegA money that was supposed to go for the audit. Very possible that the $60K was spent, and will return as a couple hundred thousand over the next few months and then they can pay for the audit and still have funds to support other deals. I have had to stretch my personal funds earlier in life to survive by being creative with what little I had starting out. My wife has been amazed at times that I rubbed 2 nickles together and some how came up with a dollar.
Here is a scenario that may be close to the mark:
Audit was supposedly going to be covered by the RegA money they got in January, but right around that time, Malibu said that they will need $35k worth of kits available in April, and more to be delivered at a date TBD. Dryworld had to make a decision, do they pay for the audit as intended and risk falling short at Malibu both hurting their reputation and also losing out on a profit, or do they use a chunk of the $60K to get the Malibu Kits made, get paid 3-4 months later, and then use that money to pay for the audit later? That would be how the "revenue" is cash.
I agree, that they are still going to show losses on the bottom line, my focus is what they do with the revenue now that it is growing. Are they going to, through timing and good decision making, get the most out of what they have at the time? I believe the answer is "Yes"
Bullish
