I agree. I think Berman can push back the deal wit
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Posted On: 03/15/2018 10:12:00 PM
Re: OldSaltDawg #10147
I agree. I think Berman can push back the deal with Cogosense for as long as he wants because I also think he is overpaying for that company. The Cogosense folks must have thought their prayers were answered when Steve made them that offer. They aren't going to walk away from that deal and Berman will be able to string them along much further out than the end of April, IF he needs to.
Two questions I would like to hear Berman address tomorrow is an update on international factories and why A/R is $2.2 million when the TOTAL sales from 2017 to 1/31/18 is $2.6 million. What is the problem with collecting? Or is it normal to allow your customers at least 10 months to pay? Perhaps he can give an update to Sales & A/R levels thru the end of Feb. Is it the same ratio or has it decreased?
IF and I repeat IF Onci is able to collect on the A/R then the profit is legit. But 10 months + is a long time to wait to get paid and by his own admission he needs to issue shares to pay some operating expenses and commissions. The only cash he does use is to pay Cogosense for product.
What happens if he doesn't collect most of this A/R balance? He'll need to find cash from other sources. A traditional bank will look at the A/R and say no way. He'll either have to find international buyers who will pay up front or he'll have to go back to the well with toxic financing.
The business itself is not a scam imo. He is shipping product somewhere. He just needs to get paid for much faster than the current 10+ months.
TP
Two questions I would like to hear Berman address tomorrow is an update on international factories and why A/R is $2.2 million when the TOTAL sales from 2017 to 1/31/18 is $2.6 million. What is the problem with collecting? Or is it normal to allow your customers at least 10 months to pay? Perhaps he can give an update to Sales & A/R levels thru the end of Feb. Is it the same ratio or has it decreased?
IF and I repeat IF Onci is able to collect on the A/R then the profit is legit. But 10 months + is a long time to wait to get paid and by his own admission he needs to issue shares to pay some operating expenses and commissions. The only cash he does use is to pay Cogosense for product.
What happens if he doesn't collect most of this A/R balance? He'll need to find cash from other sources. A traditional bank will look at the A/R and say no way. He'll either have to find international buyers who will pay up front or he'll have to go back to the well with toxic financing.
The business itself is not a scam imo. He is shipping product somewhere. He just needs to get paid for much faster than the current 10+ months.
TP
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Hopefully tomorrow SB will address many of the issues you mention. As far a making payments to Cogosense, I have not seen any discussions on how that will be accomplished. I have a feeling the buy-off is a low priority behind Delaware. I hope it is anyway.
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