AVTC has hired another CPA to complete their late financials. Need 10K from 2012 plus Q1 and probably Q2. New CPA will need another 30-60? days to finish 10K and get caught up on 2013 financials.
Company has plans to not only catch up with financials but uplist to a higher exchange. That is obviously down the road because they need to get their financials up to date before they can do anything else.
2013 should result in big increases in sales for AVTC. Marley plus Blue Rhino plus the area franchises plus Neebo plus Medbox equal many millions in additional gross sales. We'll see how the margins hold up and how much actually drops to the bottom line.
The big ramp up in sales over the past couple of years has been accomplished by selling to big name customers with large orders of thousands of units. These big companies have demanded and received smaller gross margins for their business. That has stopped the growth in profits while sales have climbed much higher. This is a typical sales cycle but at some point AVTC needs to show both higher gross sales and higher net profits.
If they were producing one common product and just needed new customers for the same product, their net profits should grow faster than sales because overhead, especially G&A, wouldn't have to grow much to service higher manufacturing volume. However AVTC is in a business where they need to customize each product for each customer. This increases the sales cycle time frame AND increases costs as the customer and AVTC tinker with design, features and costs. Once into production, costs can be more controlled and the longer the production line runs, the better AVTC should do. But the variables are different with each new customers.
Bottomline AVTC needs to demonstrate that they can generate simultaneous gains in sales and profits.
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