Wearable Health Solutions Inc (WHSI)

[appalled]

There are many different ways to define profitable.

Having gross profit for a month, a quarter, a year can be profitable.

Having a net profit for a month, a quarter, a year can be profitable.

Having a gross profit for the life of the company can be profitable and having a net profit for the life of the company is when it has become truly profitable.

All this happens in steps for a start up company. All we need is for the company to start showing some profits to offset the early losses and MDHI will start to take off.

The numbers for MDHI Robert-1 keeps posting are all accounting numbers. All the losses are inflated because there is depreciation and other write offs that will be carried over to offset the future profits. The really important figures are revenue, cost of good sold and operating expenses. In these numbers even the cost of goods sold is skewed as the company appears to be reporting the cost of goods manufactured rather than of those sold. It therefore accounts for the cost of creating the inventory and is why it fluctuates so much. The company does large manufacturing runs when they run low on product to keep the cost per unit low. THis makes expenses skewed in certain quarters but works towards overall cost control.

All of MDHI's numbers seem to be moving in a generally positive direction. Also, in the real world, cash flow is more important than profit. Yes, eventually a company needs profits to survive. However, a company can stay afloat while sustaining losses as long as there is cash flow but even a profitable company cannot keep going if past debt is eating up so much cash that operating expenses are not being covered.