Here's why the company may need another large cash infusion
1) The company said so...
The Company will continue to require substantial funds to continue development of its core business of P2O as it continues the transition to full-scale commercial production and implements its sales and marketing strategy, if full regulatory approvals are obtained. Management’s plans in order to meet its operating cash flow requirements include potentially any of the following financing activities such as private placements of its common stock, issuances of debt and convertible debt instruments.
2) The company has not provided written guidance that it will be CFP* next quarter. Any statments so far include 'forward looking statments'.
"...This Form 10-Q (“Report”) contains “forward looking information” within the meaning of applicable securities laws.... Words such as “expect”, “anticipate”, “intend”, “attempt”, “may”, “will”, “plan”, “believe”, “seek”, “estimate”, and variations of such words and similar expressions are intended to identify such forward looking information. These statements are not guarantees of future performance and involve assumptions, risks and uncertainties that are difficult to predict.
3) The company no longer has JAVACO which historically provided at least a bit of profit / operating cash.
4) The historic and ongoing cash burn rate has been roughly $1.0-1.5 million a month. The last 10Q indicated just under $2.8 million in available cash. The company has stated that it is in the capital intensive process of building / repairing / retrofitting machines. Just under 3 months has transpired since that report, thus it is highly likely that the company cash balance is very, very low. In past years short term bridge loans were required prior to PIPE / Private placements at the end of December.
Last quarter total gross profits were $676 and total operating expenses were $2,992,781. In other words, gross profits just over were .02% of the losses. Assuming no additional costs (such as additional plastic purchases) to ramp up production, the $676 gross profit would have to be multiplied by over 4,427 times just to break even. This exponential and totally improbable surge in production / profits might be enough just to break even and does not even touch the capital required to expand / build new machines.
*What is your definition of Cash Flow Positive?
Market Data 
Markets 
AI
