KPIs and Financial Performance

Financial Analysis


  1. • Total Revenue improved greatly at $123k which is the second highest month YTD ($594k YTD) and margins at 29% (32% YTD). $111k in revenue from 6 install projects and service revenue at $11k. OPEX at $16k (lowest since Jan) and net income at $19.2k ($65.3k YTD). 
  2. • Cash runway improved greatly to 3.1 months. Cash & AR at $185k, AP & CC at $129k, with $101k in Customer Prepayments


Key metrics:

 Install Rev: YTD $594k, Margin 33%; Jul-19 $111k, Margin 30%

 Service Revenue: YTD $58.7k, Margin 61%; Jul-19 $11k, Margin 61%

 Device Revenue: YTD $34k, Margin 32%; Jul-19 $250

 Net Income: YTD $65k; Jul-19 $19k



Revenue & Margin

 Install Margins: 6 projects completed in the month: [Project 1] 32% margin; [Project 2] 30% margin; [Project 3] 38% margin; [Project 4] 36% margin; [Project 5] 32% margin; and [Project 6] 19% margin (also a service project with 89% margins, probably misclassed some COGS – reviewing with team).



Cash Flow: ($1.9k) cash increase YTD ($63k lower than net income) – A lot of puts and takes but essentially operating cash flow is better than net income by about $12k thanks to A/R+Customer Prepayments, which has all been pulled out as owner draw ($85.7k)

 A/R and Customer Prepayments $51k positive

 A/P and Credit Cards $4.7k negative

 Warranty Liability $7k positive (non-cash expense recognizing on PnL, limited actual warranty work)

 Net Owner Draw: $85.7k YTD negative ($5k Draw in July)

 WIP $24k negative

 Payroll $3.6 negative (timing of wages recognition and cash out of account)



Balance Sheet:

 A/R: $86k total outstanding at end of month ($60k of which is still o/s as of Aug 11) – a few aged items totaling $10.5k mainly for [Project 11] (project delayed)

 A/P: $89k total outstanding at end of month ($89k of which is still o/s as of Aug 11) all [Vendor 1]

 WIP: $22k of projects in process: Largest – [Project 7] $11k; [Project 8] $9.5k; [Project 9] $6.9k: (Expensed Aug WIP for completed Projects) – shows $28.8k on the BS but that is pulling back Labor and materials purchased in this month to prior closed month.

 Customer Prepayments: $101k balance at July 31, 2019 – $53k increase over prior month balance – 14 projects, 3 largest are [Project 7], [Project 8], and [Project 9].

 -$1,482 due from vendors

   -$1,231.73 payment from Progressive for van – to be paid out for repair

   -$250 returned check for [Project 3] job – owed to [Contractor 1], determining how to pay him

 $7,128 undeposited funds – One payment, [Project 7], hits bank this month on the 2nd. 

 Payroll Payable -$933 related to overpay of overtime on payroll, to be recovered on future payroll



COGS & Expense Notes: Opex at $19k 

 $4.4k Other Direct Labor COGS – Payroll not allocated to customers mainly from PTO (Second highest month YTD)

 $655 Other Direct Materials COGS – Truck Stock

 $886 Fuel – Auto