Jun. 28 at 2:29 AM
$MOBX So doing some due diligence. Would anyone comment on the
$42MM in annual SGA expense. Stock compensation is
$20MM, but even
$22MM of SGA is humongous for a
$10MM revenue company. The SGA is more than the market cap.
No revenue forecast for Q2, so not a lot to go on. Payables are rising fast. Without vendors financing the business, they are burning at about
$9MM per year in cash, and certainly more without some games. They have a long runway to get to breakeven and only a few million in cash.
Unless there's a jump in revenue I can't see, and there may be with acquisitions being integrated, there will be another equity raise this year, plus retail being diluted 50% with stock options. Last raise was 25% dilution. Next one will have to be paired with a reverse split. Those rarely go well for retail.
