Fat Mikey and Doodiehead try and ignore the reality.
If the company continues to sell the ports and does not have to give them away to customers, the company does not even need big revenue increases to become cash flow positive.As the financed receivables grow the current portion of financed receivables will cover more and more of the cost each quarter. The company will end up building a profitable finance portion of the business.
Assume revenue is flat quarter to quarter, the network number grows and the sales number of ports actually drops, oh no!!!
Revenue flat . change in value of options goes from a loss of 1.1 million to a gain of a little under 100 thousand.no 332,000 preferred expense.
Without any material improvement in operations the quarterly number would move from a loss of 889,000 to a profit of around 600,000 and the growth in the current portion of financed receivables closes the cash flow gap a couple hundred more thousand dollars.
As long as the company is able to sell the ports and does not have to go back to giving them away the company will be cash flow positive within a few quarters without revenue growth, throw in revenue growth and things look pretty good.