Kelyniam Global, Inc. (KLYG)

[Nubie99]

The financials are out. Check the website.

I'm not sure why the COG on the product is all the way up to 55%, not including labor. The implant is fabricated from a block of PEEK. The cost is the price of the material from Invibio plus shipping. I was doing some research and the cost for the product should be closer to 10-15% plus a 10% margin for sales reps. Worst case total COG should be closer to 25% maybe 30%. The rest of the cost is all labor.

Looking at the numbers, even a 2x increase in the sales will still result in a company loss. Where is this money going to come from? Are they planing on selling stock to raise more money?

Speaking of labor, what is the deal with the admin fees? How can that be so high for such a small company. It is almost the same as all of the salaries and wages.

Question: If the company sells stock to raise money, wouldn't that be in the income statement?