It seems you did not read the entire press release other than the paragraph about the expected loss. Two of the company officers who are both major shareholders are personally awarding $1.2 million dollars to the company employees. By GAAP rules that award has to be taken as an expense on the balance sheet without affecting any cash flows. On a pro forma basis, MAGS should make a healthy profit this quarter and one that may be 50-100% higher than the first quarter. At that point shorts will be toast.