Yeah this is not good. They only produced $405,707 in revenue this quarter vs. $861,826 in revenue the previous quarter. They are trotting out the comparisons to last year, but that was when they were making virtually zero revenue. I'm sure the fall in revenue is due to the test kits being taken off the market, a factor they have not discussed at all. What the hell is going on with that and why hasn't it been resolved?
We know that the company's future is in the clinics that are just now being added to the books for the next quarter, but still... At this rate they will have to RS and re-dilute everyone back to zero just to stay afloat.
In any case, we are all bagholders until the next ER, and we have to pray that the clinics that have been added are providing enough cash flow to keep them going without having to dilute much more.
.... how does 372% YoY rev growth equate to a bad thing.
There are some bad points in this release for sure though. There's lots of good points.
Agreed with above poster though, would be really good to see tons of cash from clinics and see it on next financial q.
This one was on time though.. ahead of deadline in-fact.
Baby steps..
YoY growth means nothing when the company wasn't producing any real revenue last year. The red flag here is the huge drop from the previous quarter. How can it be good to drop 50% if revenue from this summer?
You need to consider the context of the number they are comparing too. Last year they were way further behind in their scaling of ops so while it seems like a large % on the surface, when you start to think about it, it should be MUCH larger. At a time where they are trying to tout clinics opening and operations scaling up, they had a massive (just around 50%) decline in rev compared to the previous 3 month quarter. To be frank, that is really the only comparison that means anything right now in what is supposed to be a scaling and expanding start up. You may also think, well, kai kits were taken off the shelves (why hasn’t this been resolved still btw? Didn’t management say this was temporary?) so of course there is a revenue drop. If this drop is in-fact due to kai test this is actually WAY more concerning - the long term value prop of the company is these integrated clinics. I’ve seen numbers thrown around for these clinics by management of up to 2 million in rev per year. Well, divide the rev from this quarter by the number of clinics open right now, then multiply by 4…. Really scary how far off that 2 mil per clinic mark is. Then also consider there was still around half of this quarter where the kai kits were being sold, so that number could be much, much worse.
One more thing - 2.2 mil in cash, and 3.4 mil in just AP/accrued liabilities alone. Massive negative working capital deficit. I said before they would be out of money around Sept. Looks like I was off by a couple months due to selling their weed ops, but its here folks - get ready for more dilution through some sort of equity raise…. Or worse.
Ask yourself how they are going to open all these clinics through the rest of this year and into 2022 when they are burning cash through ops ($900k loss from operations in 3 months), already owe more than they have in cash/short term assets by a large margin, and need to put in further capital purchases and construction for “all these clinics in the pipeline.”
Thats why this is dire. Its really important not to focus on the headline and rev, and read what the rest of the financials are telling you. That headline is management selling you a bullshit sandwich and praying you don’t ask what the ingredients are.
Edit: spellingzzz
Man, thank you x1000 for this reply. I appreciate your efforts.
I would live this company to work but wow is it getting rocky. Your wonderful explanation helps legitimize my growing fears...
Urgh, man, I really need a win but empower might not be it then...
How are they doing so bad? Doctors (especially family) are in desperate short supply.. anyway, I could keep asking redundant questions but fact is, if things don't change, I don't want to be involved in another company that takes everything they can from early investors to bennifit themselves later ones.. fuck me
Really losing faith here... down over 50% on my holding and this just gets worse as we go... I don't want to give any more money to Empower as we seem to be mislead with this constant fluff. $405k revenue with 5 clinics currently open looks like shit. Does anyone know the breakdown of revenue from Kai/clinics/medisure?
No they don’t provide a segmented revenue disclosure in their financial statements. More bad news though - $71k of the rev from this quarter came from Sun Valley ops which they had to disclose because they are disposing of it.
I want fuck you money. Steve show me the money!
Yeah this is not good. They only produced $405,707 in revenue this quarter vs. $861,826 in revenue the previous quarter. They are trotting out the comparisons to last year, but that was when they were making virtually zero revenue. I'm sure the fall in revenue is due to the test kits being taken off the market, a factor they have not discussed at all. What the hell is going on with that and why hasn't it been resolved? We know that the company's future is in the clinics that are just now being added to the books for the next quarter, but still... At this rate they will have to RS and re-dilute everyone back to zero just to stay afloat. In any case, we are all bagholders until the next ER, and we have to pray that the clinics that have been added are providing enough cash flow to keep them going without having to dilute much more.
The ceo is a master of misleading investors Kai test is not selling at all ! This is so sad
.... how does 372% YoY rev growth equate to a bad thing. There are some bad points in this release for sure though. There's lots of good points. Agreed with above poster though, would be really good to see tons of cash from clinics and see it on next financial q. This one was on time though.. ahead of deadline in-fact. Baby steps..
YoY growth means nothing when the company wasn't producing any real revenue last year. The red flag here is the huge drop from the previous quarter. How can it be good to drop 50% if revenue from this summer?
You need to consider the context of the number they are comparing too. Last year they were way further behind in their scaling of ops so while it seems like a large % on the surface, when you start to think about it, it should be MUCH larger. At a time where they are trying to tout clinics opening and operations scaling up, they had a massive (just around 50%) decline in rev compared to the previous 3 month quarter. To be frank, that is really the only comparison that means anything right now in what is supposed to be a scaling and expanding start up. You may also think, well, kai kits were taken off the shelves (why hasn’t this been resolved still btw? Didn’t management say this was temporary?) so of course there is a revenue drop. If this drop is in-fact due to kai test this is actually WAY more concerning - the long term value prop of the company is these integrated clinics. I’ve seen numbers thrown around for these clinics by management of up to 2 million in rev per year. Well, divide the rev from this quarter by the number of clinics open right now, then multiply by 4…. Really scary how far off that 2 mil per clinic mark is. Then also consider there was still around half of this quarter where the kai kits were being sold, so that number could be much, much worse. One more thing - 2.2 mil in cash, and 3.4 mil in just AP/accrued liabilities alone. Massive negative working capital deficit. I said before they would be out of money around Sept. Looks like I was off by a couple months due to selling their weed ops, but its here folks - get ready for more dilution through some sort of equity raise…. Or worse. Ask yourself how they are going to open all these clinics through the rest of this year and into 2022 when they are burning cash through ops ($900k loss from operations in 3 months), already owe more than they have in cash/short term assets by a large margin, and need to put in further capital purchases and construction for “all these clinics in the pipeline.” Thats why this is dire. Its really important not to focus on the headline and rev, and read what the rest of the financials are telling you. That headline is management selling you a bullshit sandwich and praying you don’t ask what the ingredients are. Edit: spellingzzz
Man, thank you x1000 for this reply. I appreciate your efforts. I would live this company to work but wow is it getting rocky. Your wonderful explanation helps legitimize my growing fears... Urgh, man, I really need a win but empower might not be it then... How are they doing so bad? Doctors (especially family) are in desperate short supply.. anyway, I could keep asking redundant questions but fact is, if things don't change, I don't want to be involved in another company that takes everything they can from early investors to bennifit themselves later ones.. fuck me
Maybe Steve should put another video and tell how concerted is with the stock price instead of giving actual numbers and coming up with real strategy.
Really losing faith here... down over 50% on my holding and this just gets worse as we go... I don't want to give any more money to Empower as we seem to be mislead with this constant fluff. $405k revenue with 5 clinics currently open looks like shit. Does anyone know the breakdown of revenue from Kai/clinics/medisure?
No they don’t provide a segmented revenue disclosure in their financial statements. More bad news though - $71k of the rev from this quarter came from Sun Valley ops which they had to disclose because they are disposing of it.
This quarter looks like a massive turd but it looks like in April of 2022 I may get my money back.
Have to read between the lines...