Replies to post #76085 on All American Pet Company Inc (AAPT)

[Leirum]

Oh Boy - and you think I would not have known that.

They sold the inventory with a loss - but better to get rid of it than to get nothing.

But let's get serious here:

To break down a 12 months Revenue - Base to the break-even Point
is around $ 10 Mio or $ 6 Mio. And the latter figure is the one I am interested in calulation Basis.

Why:
The G&A costs are too high: The should be rather around $ 2,5 Mio on a annual Basis but the way it Looks here it will be around $ 5 Mio. for the year 2013. The reason of course we know, and if there is no Repetition of this in 2014 they could come down to 2.5 Mio $

The COG as a rule is 50 % of the Revenue side:

Revenue: $ 6 Mio
less COG $ 3 Mio
less G&A $ 2.5 Mio
less MA $ 0.5 Mio
______________________
Evenbreak

To clean out the Balance-sheet once and forever, $ 10 Mio Revenues would do the trick if they Keep the COG at 50 % and the G&A and rest at $ 3 Mio.

In short: To reorganize this Company, those doing the financing should as well delegate somebody to the board to make sure, that the G&A costs are kept under control and the COG marging remains around 50 %.