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Posted On: 01/19/2018 1:45:26 PM
Post# of 40990
Everyone is so confident on the revenue numbers so lets examine the expenses for the distracted driving solution.
There is product cost, shipping, commission, factor fees, and most likely co-op advertising. Oh yeah, don't forget SB's negotiated commission on all deals as specified in an early filing. The only big wild card imo is how much co-op advertising On4 provides for the dealers. Flat rate per week or a % of unit cost sold to dealer?
Digging deeper are costs for acquiring new production lines, import fees, etc., SEO costs. Guessing the overall costs will be in the $100-$125 per unit range with a target profit margin of 50%.
One other issue that may not be reflected on the financial statements in the amount of reveue recorded. Since On4 aquired Cogosense in September 2017 but was the purchase price was to be paid in six consecutive monthly installment, On4 may not have owned enough of a majority % to include any of that revenue on the books. They may just report the commision on that revenue like they had done with the previous two quarters.
I'd like to see a cash flow statement reflects the A/R ,less factor fees, and see if the cash is indeed being spent to make the installment payments ($583,000 per month) on time.
There is product cost, shipping, commission, factor fees, and most likely co-op advertising. Oh yeah, don't forget SB's negotiated commission on all deals as specified in an early filing. The only big wild card imo is how much co-op advertising On4 provides for the dealers. Flat rate per week or a % of unit cost sold to dealer?
Digging deeper are costs for acquiring new production lines, import fees, etc., SEO costs. Guessing the overall costs will be in the $100-$125 per unit range with a target profit margin of 50%.
One other issue that may not be reflected on the financial statements in the amount of reveue recorded. Since On4 aquired Cogosense in September 2017 but was the purchase price was to be paid in six consecutive monthly installment, On4 may not have owned enough of a majority % to include any of that revenue on the books. They may just report the commision on that revenue like they had done with the previous two quarters.
I'd like to see a cash flow statement reflects the A/R ,less factor fees, and see if the cash is indeed being spent to make the installment payments ($583,000 per month) on time.
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