Margins are slim but they've made profit last 4 quarters, and if...

Margins are slim but they've made profit last 4 quarters, and if you look at product costs you'll probably find that the inventory issue you complained about last quarter is what impacted the margins this quarter.

It's really a no win with you, because last quarter they made a good profit ($700k - 4% net margin) and you complain that inventory was used (even though liabilities also went down). This quarter they have a smaller profit ($283 - 1% net margin) and likely have restocked inventory as they had $6million higher product costs - increase from 68% of costs to 76% of costs - you now complain about margins.

I'm just interested to see the overall picture and how it fits in. The business over the last 4 quarters has made positive cashflow of $2,147,000 vs a loss of 653,000 the 4 quarters prior. 

The business has increased revenue to 84.3 million in the last 4 quarters from 60.2 million the 4 quarters prior to that. In that time they've spent 5.5million on businesses and currently have 2.4million debt from those businesses and had to raise 1.5million. Thus paying 1.6million off from cash on hand (i.e. from operations, as cash on hand today is about the same as we had december 2017).

Continuous story over the last 2 years shows positive momentum. I agree with you that margins need to improve, although I also think as revenue is ramping up, the profit is also increasing, so they could be a low margin company if the revenues were significant enough.