Not asking them to count invesntory as sales.. but if they said we have 750k of inventory, then we know that of that 1.1mil in cash going out for production, some 500k of that spend is sitting as inventory. Do not focus on things like directors or staff fees.. becuase they should be fairly set (certainly directors fees are), whether they make 4mil in sales or 1mil. What matters at this point is COGS!
I will put it back to you.. why did they not state their gross margins?
Not asking them to count invesntory as sales.. but if they said...
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