Doesn't their new financing deal lend a lie to their $12 million backlog ad sales claims?
They just signed a financing facility to borrow up to $1.5 million against receivables. They had claimed as recently as December 2012 that they had a backlog of ad sales of $12 million. If that figure had been real is it not likely the credit facility would have been closer to that $12 million figure. This leads one to conclude that the real backllog ad sales figure is only $1.5 million. This would leave ad sales flat with the prior year.
As I've been saying, I think the backlog number is a little flakey. Who knows how much a client testing out a pilot ad campaign with IZEA will ultimately spend. Probably depends on what results they get from the initial spend.
Credit line would probably apply to what has already been billed - it's not a leading indicator like a supposed backlog. It would be for 30, 60 or 90 day collectibles. You are mixing up 30, 60 or 90 day revenue with annual revenue. Assuming they are taking 2 months to get paid then a 1.5 mil credit line would be consistent with 9 mil in revenues If they are getting paid in 30 days, then it would be consistent with 1.5 mil * 12 = 18 mil annual revenues.
So the credit line doesn't prove or disprove the backlog. Assuming they are getting paid net 30, the bank would still require them to actually bill clients for services before they could borrow against eligible receivables.
Your post is just way off. What the credit line does show is that someone thinks they are a serious enough company with a real business plan and is willing to extend them credit. That's a plus with the stock at 25 cents.
Might be amusing to look at actual data and try an actual calculation here. The last 10Q shows receivables of 690K and quarterly revenues of 1059k. Quarterly revenues are running about 1.5X receivables (i.e. customers are paying them in an average of about 45 days). Thus a 1.5X mil receivable credit line would be enough to finance quarterly revenues in the 2 mil to 2.5 mil range. So if you want to go by the size of the credit line it would be consistent with annual revenues of 8 - 10 million.
IMO, it would actually be rather positive if they did 2013 revenues of 8 - 10 mil after doing 1 mil quarterly revenues in Q3. Of course if they start to blowout that revenue number, they can always get the credit line increased - LOL.