Alterras Systems Inc (fka ASIUQ)

[upshegrows]

You are a waltzing conundrum.



USG wrote back on August 20th/2013: Post #622:

One would expect a ramping up of Revenue as sales are procured and a fairly predictable COGS.

Barunuuk rebuts on September 5th, 2013: Post #626

I disagree with your COGS analysis, as with any startup, costs are going to be significantly higher at the onset, and as a process is scaled up, many of these costs will come down and streamline. Also, in the Cost of Sales, you will notice $54,000 of depreciation. Though under accounting standard, this is a cost, it is not an operational cost, and tends to drop significantly over time, and really shouldn't be utilized in determining profitability. Moreso, direct packaging costs could also contain significant upfront costs as well that may be lessened down the line.

15 Minutes ago Barunuuk blindly writes: Post #835

One thing that hasn't grown quarter over quarter is cost of sales; $323K last quarter, and ~$316K the quarter before that. So it looks like that number is a good cost to use.If sales doubles another quarter, it would exceed cost of sales.

Not only do you not understand the ins/out of depreciation and how to account for it in a valuation, you had/have no clue on how COGS works. I too expect that the sales number will be higher. It has to be or they won't have a business. And I'm not using that as a run rate but rather to show how much sales must increase without any additional expenses to earn just one penny. The intent is to show how irresponsible it is at this stage, to be calculating out 100X multiples on earnings.