rado
2 years ago
I listened to it, not super closely, but I didn't hear anything that stood out to me. I noticed one analyst was baffled how they could increase revenues >90% and still not earn anything, but it was all those one-time charges plus inflated prices. Bernardo seemed to suggest that Sam's was the customer that accelerated their orders. Also they said something about Target, but said something vague about issues with supply of their other products. At my local Target last time I checked there were no singing machines and only a few microphones, everything else was empty on that set of shelves. They have a lot of inventory right now and on a previous call they said it was recent inventory, so I think they have the product to give to the stores.
Nice to see NILE is still buying.
rado
2 years ago
Looks like most of the ~$1M increase in SGA is one-time. That's a positive. One customer upped their timetable to receive more product up-front and the Walmart product was an initial order. Not sure how much Walmart ordered in advance, will they need to reorder much for the holiday season? The advance order could also cause the next quarter to be lighter. Freight ends up in cost of revenue and freight costs have been coming down, so that could improve in coming quarters.
"""
OPERATING EXPENSES
During the three months ended June 30, 2022, total operating expenses increased to approximately $3,034,000 compared to approximately $2,068,000 during the three months ended June 30, 2021. This represents an increase in total operating expenses of approximately $966,000 from the three months ended June 30, 2021. The increase in operating expenses is primarily due to an increase in general and administrative expenses of approximately $949,000. There was an increase in pallet expenses, warehouse supplies and expense and temporary labor at our California facility of approximately $262,000 due to an increase in third party logistics business, a one-time project associated with the initial product set in a major customerβs consumer electronics department (see NET SALES), as well as price increases due to inflation and supply chain shortages. There was an increase in legal, professional, investor relations and stock exchange listing fees of approximately $222,000 primarily related to the public offering and Nasdaq up-listing in May 2022 (see NOTE 12 -PUBLIC OFFERING AND NASDAQ UPLISTING). There was an increase in compensation of approximately $172,000 primarily due to compensation for new members of the board of directors and officersβ incentive bonuses. There was an increase in bad debt reserve expense of approximately $151,000 related to required reserves commensurate with the increase in net sales and accounts receivable. The remaining increase was primarily due to one-time ERP system projects, increases in costs due to inflation and increases selling and administrative variable expenses commensurate with the increase in net sales."""
NobleRoman
2 years ago
Definite interest, and I think that would be a great buy. I'm just not going to for completely different reasons. I'd love to if money were not object. Just want to maintain a comfortable margin cushion. I have cash-secured puts, the majority of which don't expire until January. And I'd rather not close them out, because that would just cost me money to do so.
And, I recently bought another 1,000 shares of RMCF at $6.80 and another 10,000 shares of our common experience at IVFH at .25 just because of Pappas, Banderas, and the now disgruntled Denver Smith. And I had bought another 1,000 shares of PCYO after selling MICS, which is $11,000 right there. And bought more penny stock NROM.
So, the first two alone account for all the equity I had here prior with MICS. Plus the extra buys. I love MICS at this price. Just love everything else too. And want to keep a very safe margin cushion. Until one of my dormant volcanoes explodes eventually. Nothing against MICS though. Would love to have it also.
Of course, a drop below $4 would be irresistable and I'd just have to take that risk. Probably could raise that to anything below $5 after tjhis quarter. But, yeah, this price at $8 I think is very fair.
NobleRoman
2 years ago
Fantastic quarter! I was stuck in doctor's office for annual checkup and couldn't comment. Surprised at the pullback too, but I imagine that is due to the entire market being down. Dow dropping 400 points against this backdrop doesn't help.
Ault's mystery projections of $52 million annual sales could have been a forward projection which didn't occur to me. Now that number is suddenly very doable. All those fears of recession were erased by Wal-Mart, as I was saying. This is a good beat to overall common sense expectations. Blowing our normal 1st quarter sales precisely because of these new deals, which is what I've been saying on the record.
I'm not in the stock, of course. IFFF I had my 1,000 shares, I would have only experienced a max of $2000 paper gains in the beginning of the day. And who knows what at close. Good fundamentals though.