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Jones Soda Co. (JSDA) Message Board

  • baldingcontrarian baldingcontrarian Jan 4, 2014 8:57 PM Flag

    Cash flow 101 and the need for future financing

    unarguably, the last 4 reported quarters constitute the 1 st full yr JC has been at the helm.
    cash burn over the last 4 quarters is a total of about 470k dollars.
    Given the current cash position, should there be no change in those figures going forward, the company has enough cash to last them more than 2 years, without depending on a credit facility, equity financing, nor warrant proceeds from previously issued tranches.
    Now the question is, does JC improve those 1st yr cash burn figures and go cash flow positive over the next 4 qtrs. and beyond.
    Judging by the improvement in cash burn (it went from 3MM to 470k from the 4 qtrs. before JC to the 4 qtrs. AFTER JC.
    So there is a massive deceleration in cash burn in year 1 of JC. Place your bets on the next 4 quarters-I know I am.

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    • NUTHEAD your reply makes no sense just wondering how long until BK now?

    • nuttierthansquirrellshiat nuttierthansquirrellshiat Jan 5, 2014 11:11 AM Flag

      the problem with your model is your saying there will be no growth going forward,the other problem is jones has already told you they will need to raise capital to survive mid 2014 , thats because of jones buisness cycle were jones ramps up for soda season in Q1 , thats were they spend money to make money and they have no money to ramp up so there will be no growth, jones is in survival mode and the credit line will not save them ...

      it costs just over 5 million ayear to keep jones alive in survival mode , jones current cash and creditline does not even cover their current liabilities, and jones can not dilute to raise capital per their new creditline details , ,JC's hands are tied ,

      to breakeven on 5 million SGA expense with jones margins ,jones needs 20 million in sales and thats to breakeven , if they are going to grow then SGA expense will increase and more sales will be needed to cover the expense ...jones days are numbered ...

      Tick , toc

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