As far as debt goes, it doesn't matter how much sales have risen if they're not making a profit. Without a profit, there is no way for JAMN to pay back the interest on a loan, nevermind the principle.
6 months ago, MP gave JAMN $2.5 million. That money is gone.
Let's say that they borrowed $5 million for their cash needs for a year (first thing to note is that this represents the same amount as half the amount that they planned to have for revenue for the year). At 10% interest, 1 year's interest amount would be $500K, which is the amount of gross profit they have in a single quarter.
If it is a 5 year loan, the monthly payment would be about $100K; the quarterly amount would be $300K. So let's say that sales remain the same at $2 million per quarter. 3/4 of that is cost of goods sold (though for a while that's not a problem - that's what the $5 million loan is for), leaving the $500 K that we saw in gross profit. Take away $300 K and you're left with $200 K. The quarterly non-COGS expenses are $3.5 million, though of course not all of that is based in cash.
A $5 million loan buys a year, maybe 2. But it doesn't get them any more than that. And that's why they can't get conventional debt.
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