In addition to the items already mentioned, here are some things that I found encouraging:
a.) As of March 31, 2014, there were 51,720,596. As of Q3, 2014 there was 51,620,000 shares. NO DILUTION to speak of. They did 110,000 as a part of service contracts. I was concerned we would see some hidden placement of shares, especially in the seasonally low period of Q4. To learn there was no dilution in Q1 either was a bonus. This, in my opinion is a very good sign.
b.) Still no Long term debt!!
c.) Cash on Hand at the end of the year was $1.77M. While this is down from $2.4M, they appear to be managing the money well - No DILUTION - and there is enough money to pay the bills. If the coconut water is selling as well as they say, they will be able to generate profits from sales and maybe even get to cash flow positive in 2014 without further dilution. Remember CASH IS KING!!!
d.) Gross Margin is at 32%. While down 1%, this is still a good healthy number. I remember them saying the Pulse beverages are going to be a little closer to 40%. No mention on the margin on the coconut water but I suspect it will be in the same range.
e.) The lawsuit that was "pending" in Vancouver B.C. appears to have gone away. Pulse previously reported they had never been served and they also noted the plaintiff died. The estate must not have had any case and this reports indicates there is no legal proceedings against them. One less thing to worry about!
Hopefully, the market will see this as good progress.
