Saddle Ranch Media Inc (SRMX)

[BigfootSlapper]

Tri Cascades Current Finacial Status and Path to being Cash flow positive.

Disclaimer
I am very bullish on Tri cascade and am not a financial advisor. I am speculating on several numbers below (Ex. Dongles landed cost, CIT interest rate) and do not know the prices or cost on information not publicly available, these are just my best guesses.

Some people might be asking why Tri Cascade has a 1a open since they are now selling product. It's because they are currently cash strapped. Tri Cascade is on the verge of becoming cash flow positive and supporting operations through sales but are not there yet. Currently Tri Cascades investor Wen-Shone Shiau has been footing the bill for operations, but these are bridge loans incurring interest. Wen-Shone has invested into Tri Cascade purchasing 2 million preferred shares for $750k (2020/2021) and now these bridge loans to ensure Tri Cascade has the funds to launch and sell the VOS 5g Dongle. Now since the dongle is released the 1a is extremely undervalued and outdated IMO but is the only option Tri Cascade currently has prior to being able to support operations from sales.

DD on Wen-Shone Shiau
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=172427154

Below is Tri cascade current financial status according to 2023 Q1

One thing important here is that Max Li Tri Cascades CEO has not been taking a full salary over the last 3 years to keep operations cost down. (And is one of the many reasons I invested into SRMX)

Current Liabilities:

Accounts payable and accrued expenses $1,257,847
Short term bridge loans, and accrued interest thereon $573,230 (Wen-Shone Bridge loans)
Accrued compensation due Max Chin Li, CEO (related party) $427,666
Current liabilities $2,258,743

So first thing Tri Cascade needs is to pay back Wen-Shone to get the bridge loans off the books incurring interest.

The First sale to Newegg IMO Tri Cascade profited $311,370 Net Profit - Other cost Taxes and shipping to newegg from Tri cascade. So let's say they clear 250k after taxes and shipping. (just a guess)

Newegg broken down IMO
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=172441603

$573,230 (Wen-Shone Bridge loans) - $250,000 = $323,230 still owed to Wen-Shone

Tri Cascades 2023 first quarter operating cost was $387,201 x 4 quarters = $1,548,804 yearly operation cost.

As you can tell SRMX still needs cash to continue operations and it sucks that is coming from this outdated 1a but IMO it is a necessary evil to providing SRMX with much needed cash prior to becoming a profitable company. Now what do they need to sell to not have to lean on loans or 1a's?

Here's IMO how This is just through bulk sell of the dongle (hardware) and does not include data plan revenue MRR or Amazon/Tri Cascades site
This is also assuming the Dongle landed cost to Tri cascade is $80 per dongle and CIT groups interest is .5%

The Newegg sale was ecommerce and profit margins are much higher ($160), when they start bulk selling to brick and mortar, IMO a modest assumption for profit per dongle sold will be right around $100 and brick and mortar will pay between around $160 to $220 dollars per dongle representing revenue for Tri cascade. For this I am going to go with $200, for simplicity's sake. I will also include the stock price with a 9x sales (source: finviz.com) at OS of 15 billion shares again just to keep the number simplistic. This is a great write up covering Tri Cascade if you would like to read.

https://www.linkedin.com/pulse/tri-cascade-srmx-hidden-gem-otc-market-agustin-mario-gomez-beret?trk=public_profile_article_view

15,000 dongles sold x $100 profit per dongle = $1,500,000 net profit ($3,000,000 revenue) x 9 = $27,000,000 MC (Share price .0018)
This will cover yearly operations cost. With the Newegg sale we only need 13,070.

25,000 dongles sold x $100 profit per dongle = $2,500,000 net profit ($5,000,000 revenue) x 9 = $45,000,000 MC (Share price .003)
IMO, between 25,000 and 50,000 bulk dongles sold is an achievable goal by end of year 2023.

50,000 dongles sold x $100 profit per dongle = $5,000,000 net profit ($10,000,000 revenue) x 9 = $90,000,000 MC (Share price .006)
This will cover yearly operations cost and wipe out Current liabilities if Tri Cascade wants to.

250,000 dongles sold x $100 profit per dongle = $25,000,000 net profit ($50,000,000 revenue) x 9 = $90,000,000 MC (Share price .03)
This IMO this number should be achievable in 2024.

Now with this being said IMO anything over 25,000 dongles bulk sold will allow Tri cascade to be able and support operations as well as pay off Wen-Shone and other pressing Current Liabilities. Assuming the numbers above are within reason.

So, IMO consider yourself lucky if you are looking to invest in Tri Cascade and have this opportunity to buy in trips before IMO larger POs start to role in. Just My Opinion. This is not Finacial advice!