Replies to post #2383 on Celsius Holdings Inc (CELH)

[Rainmaker88]

More likely the final writedown of returned inventory from discontinued distribution partners. It looks to me like they are just clearing the decks in order to report the first profitable quarter in the company's history.

[Toxic Avenger]

Comparing the 3Q and 4Q numbers shows what I'm talking about really clearly.

3Q'12 Revs - $2.5 million, Gross Profit, $900k, SG&A, $1.1 million, loss $300k

"The Company recorded a net loss of $278,000 for the third quarter ... The reduction of the loss in the current periods is mainly due to a reduction in selling and marketing expenses."

4Q'12 Revs - $1.8 million, Gross Profit, $800k, SG&A, #1.4 million, loss $700k.

It's a challenge most underfunded pinkies face - to increase sales, you need to spend more on marketing, but that increases the losses. Then when you cut back on marketing to try and earn a profit, the sales fall too much.