August 26, 2019 at 12:27 pm #140920
How $VYST is Profitable per 10-Q/6M Ended June 2019…
I believe the upcoming 8-K will add huge clarity to the VYST/Rotmans union that has been established. In my opinion, I would not panic from that 10-Q. VYST did not show the full hand of Rotmans. They only showed what they were required to show to get the 10-Q completed. These financials will not include the revenues generated from the non-re-occurring, extraordinary items side:
The financials, since it’s the Pro Forma format, will not include the $18.6 Tax NOL that will make a huge difference. See Page 11 from their financials below:
Also, the financials did not include the revenues from the furniture warranties. This is where an additional $6/$7 Million in revenues per year will come from:
The $6/$7 Million in furniture warranties and the $18.6 Million Tax NOL would fall into the classification as the non-re-occurring, extraordinary items. These numbers could actually be higher, but I’ll stick with these amounts for now. Remember, since this is a Pro Forma format, they are not required to indicate all of their revenues and their adjustments for the reasons I indicated above.
From doing the math and what was indicated within the 10-Q, just based on that fact alone, we know that all of the revenues from Rotmans were not included. The furniture warranties will bring in an extra $6/$7 Million of mostly Net Income per year as there are little to no Expenses associated with the warranties. That alone makes Rotmans a profitable company based on the numbers within the VYST recently filed 10-Q.
Please allow me to further explain…
Based on what was indicated, per the 10-Q below, I believe that VYST will prove to be profitable for the reasons following:
Again, all of the revenues from Rotmans were not included. The warranties will bring in an extra $6/$7 Million of mostly Net Income as there’s are little to no Expenses associated with the warranties.
You can reverse the math and take the unaudited pro forma ”condensed consolidated” Net Loss on Page 28 of -$4,595,000 and subtract it from the VYST six months ended Net Loss of -$4,157,877 and get a Net Loss of -$437,123 for Rotmans for the six months ended June 30, 2019.
-$437,123 x 2 = -$874,246
This post below explains how based on the new tax laws per the Tax Cuts and Jobs Act (TCJA), the Tax NOL for VYST will eliminate their corporate taxes and still leave room to have such be affected as if such was applied directly to their profits:
This would wipe out the – $874,246 Net Loss and would literally make the $7,000,000 Warranty Revenues translate to approximately $7,000,000 Net Income. So…
$7,000,000 Net Income (Annually) ÷ 1,105,732,080 shares (OS) = .0063 EPS
** PE Ratio for the Furniture Industry is 36.53:
.0063 EPS x 36.53 PE Ratio = .23 per share VYST Valuation
Keep in mind, if they cut the OS in half or by a fourth, then the valuation grows by that much too. So, why would they believe they are going to the NASDAQ without doing a reverse split? I would ponder to wonder to say to simply stay tuned to see what will materialize in the near future to see why they believe as they do. I have a feeling that they have a plan.
August 29, 2019 at 10:40 am #141663
Great move here yesterdayAugust 30, 2019 at 1:15 pm #141922
The fundamentals are not bad
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