Replies to post #15569 on Mike The Pike Productions Inc (MIKP)

[chefdujour]

The only thing that comes to mind is that short term they have a negative cash flow due to the increase in staff, rent, utilities etc until more revenue is generated. we don't have details so we can only speculate. imho

[gempicker]

I think his point was that the ARC stores went online less than a month ago... I'm sure many chapters haven't even heard or begun to hear about this fundraising tool.. Over the next few months I would expect increased revs coming from these stores as word of mouth and additional supporters sign on to help their specific non-profit...

[kermit42]

Another explanation from those already given--delay in accounts receivable. I have no first hand experience with the retailer side of credit card transactions, but in most business deals, income sits in accounts receivable for 30-90 days before the money is actually received.

Assuming that is also the case with credit cards, the stores have been up and running for no more than a month so, despite all the sales going on, it's possible that little or no money has been received yet. Even though they may have significant revenues on paper, they may still need other sources of funding to pay rent and salaries.

I imagine others here can confirm or deny this.



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