Let's revisit the cost side of Berman's deal with
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Posted On: 12/31/2017 3:54:38 PM
Let's revisit the cost side of Berman's deal with his products.
He receives a profit incentive bonus by way of a sales commission equal to 25% of the value of all new executed contracts, net of any payments to outside services, derived by the Company from such new contracts.
It's unclear whether this applies to ALL contracts, whether or not originated by Berman. Use US Warranty as an example. Is he entitled to the commission if US Warranty makes sales (and US warranty also get it's 10% commission)?
Sure sounds like he would. At least 15% if it's net.
So you can see how costs add up. Using a $200 price point:
25% commission = $50
20% factor fee = $40
Unit Cost = $32
That gets you to $122 before any overhead is included.
You can also bet that SB is accruing all his monthly salary until they have enough cash flow for him to pay himself. $10K per month starting March 2016.
Realistically the audited financials "expected" at the end of January will be a litmus test of sorts to see if the numbers really add up.
The accountants must go thru every quarter since the last 10-Q was officially filed (probably previous company) and update quarter to quarter. That's why six weeks from mid-October was never in the cards.My hunch is that you will see an extension to the Jan 31 date but I hope not.
He receives a profit incentive bonus by way of a sales commission equal to 25% of the value of all new executed contracts, net of any payments to outside services, derived by the Company from such new contracts.
It's unclear whether this applies to ALL contracts, whether or not originated by Berman. Use US Warranty as an example. Is he entitled to the commission if US Warranty makes sales (and US warranty also get it's 10% commission)?
Sure sounds like he would. At least 15% if it's net.
So you can see how costs add up. Using a $200 price point:
25% commission = $50
20% factor fee = $40
Unit Cost = $32
That gets you to $122 before any overhead is included.
You can also bet that SB is accruing all his monthly salary until they have enough cash flow for him to pay himself. $10K per month starting March 2016.
Realistically the audited financials "expected" at the end of January will be a litmus test of sorts to see if the numbers really add up.
The accountants must go thru every quarter since the last 10-Q was officially filed (probably previous company) and update quarter to quarter. That's why six weeks from mid-October was never in the cards.My hunch is that you will see an extension to the Jan 31 date but I hope not.
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