So, lets just say margins expand to 25%. That mean RNIN needs sales of $12,000,000 per quarter to break even. People do realize this correct?
Here's the math:
Sales $12,000,000 COGS $9,000,000
Gross Margin = 25%
Operating expenses = $2889.
Profit of $121,000.
Any to think operating expenses would stay the same with the level of sales growth is pretty naive.
I just cant see how this company can possibly survive. That is $12MM per QUARTER. Does anyone really see a company that has never topped $7.5 MM in revenues scaling to almost $48 million before they run out of cash? The model is just not working.