Sorry for late reply. Even at the current valuation, say 70 cents a share, and again assuming a rich P/E of 25, they need EPS of 2.8 cents a share, ie. net earnings of $2.6 million, on Sales of $26 million, or a 26000% increase over current levels.
Btw, at the rate they are burning cash, another equity financing round might be coming.
As for those who point to patents and trademarks, let's not forget that this is about smoothies, it's the equivalent of me saying I have a new way of grilling hamburgers(!). I think you get my meaning.
forgot to add, for a company like this you should be looking at a "safety net", ie. Cash per share. Well, no safety there, 1 cent per share. Sure, they can raise some...probably by diluting even further your existing shares.
I upvoted you because you're asking the right questions, not because your numbers are realistic :)
For starters, this company has a gross margin of 48%, but a NEGATIVE 900% net operating margin. The median operating margin in the food industry is about 5-6%, I'll give you 10% for BRFH in some imaginary time in the future, that would mean Sales of $40 million on net earnings of $4 million. So you're asking a company to raise Sales from $1 million to $40 million.
As far as the valuation, it looks more gloomy there, for a price target of $3, and giving them a rich P/E of 25, they need 12 cents EPS, which means $11.5 in net earnings, which means $115 million in Sales(!)
...hence, the YTD plunge.
Don't get me wrong, I think they have a good product, but having a good product and monetizing it are two different things.