One of the things you may not have noticed is that the company is recognizing the franchise fee of $5,000 over the 10 year franchise license period. That would reduce the $41,000 to about $36,000. I would get more into the implications of what that means, but I am sure the cheerleaders already have steam coming out of their ears right about now.
As for stock based compensation, the only way it could go up is if they issued more options/warrants, which is doubtful since they are so close to running out of shares. They need the shares to sell or for the convertible debt.
In terms of being cash flow positive, I don't see it happening at least until 2021 or beyond. I know I keep mentioning the elephant in the room, but that $8 million in refunds is due within the next 12 months, and is going to kill the company. The only way I can see that being paid off is from deposits from new franchisees because the royalties aren't going to be close. In other words, stealing from Peter to pay Paul. Which kind of leads to the question, then how do the machines for those franchisees get paid for? From selling more machines. However, at some point there aren't going to be any more buyers. I hate to say it, but it kind sounds like a ponzi scheme at that point.
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