Hi Amblesideguy!
That MYEC has these new revenues coming in is great and the transactions will continue to grow but, I am concerned about the .25 cents gross revenue per transaction. When MYEC can boast of 4 million transactions in a quarter ( that's four to five times what they are currently doing) that is still, just $335,000 gross revenue per month, not net profit, but gross revenues.
I feel MYEC won't see a meaningful profit margin until it can turn 20 million transactions a quarter. At the going .25 cents/transaction, this would produce $1.25 ml gross a month to pay for expenses and payroll; anything over that would fall into the profit side of the balance sheet unless they were to set aside funds for growth.
MYEC could get to net profits quicker were it to reduce their cost of transactions or/and increase servicing fees. Maybe there are added services the company could sell.
Instead of .25c a transaction, like .50c per deal would help a lot.
So that's why I wondered if or when they would reach that point because from there on it's a cash machine.
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