Savvy Trades and Investments

[littlefish]

MITQ- My concern would be around SVOG non recurring incentives giving some boost previously but not now so a deteriorating business with increasing costs.

“Net loss was $(0.794) million for the three months ended December 31, 2023 compared to net income of $0.046 million for the three months ended December 31, 2022 or a decline $(0.840) million. The decrease was due to lower revenues $(1.578) million, as a result of the non-recurring 2022 SVOG incentives in 2023, the related lower gross margin impact of $(0.553) million, higher operating expenses of $(0.157) million and lower other income of $(0.130) million.”

https://www.cohnreznick.com/insights/svog-closeout-process-steps-to-take

Looks like with the non-repeating SVOG nature, their core business is struggling quite a bit based off last Q (much higher SGA in % terms and even dollar terms on lower revenues).

Just off a quick glance tho and never looked at it before.

All IMO only.