Complexity Hides Fragility: Losing a $20m Business

The problem is that directly drives our, our revenue and profit margin. And so long story short, it cut $2 million in EBITDA out of the business.

And so we had the same amount of patients. They're, they're congestive heart failure patients. We had the same amount of logistics required in house staff, like all of that to take care of these patients are equal, but our top line revenue just drops.

So that's all ebitda. Right. It's a direct shot to our ebitda line. So 2 million. Poof. You know, we'd already eaten of the four, almost a million just in, you know, additional salaries, professionalization audits, like all that.

So now we're down to a total million. If nothing else changed in possible EBITDA for a total 4 million. Focus. Right? And so that's when things really, really got bad.

And it was really the beginning of the end at that point. Like, we, we had survived that first year and got to a place where like, hey, we can do this. But this was the one that ultimately, you know, broke, broke our back.

There are several more things that we can go through that happen that were bad, like ransomware, attack on a supplier of ours that froze all of our, our payments and all kind of stuff like that. But long story short, we, we ended up lasting another 18 months after that and running on fumes. We had two different layoffs, half the company twice.

Extremely painful. Shut down one of our offices. Just trying to get it down to a site like a small enough company to turn off the maximum EBITDA we can based off of our patient load, while also focusing on IVIG and specialty medication. So we're having to shift the whole new company in a different direction now, which I was heading up.

So during this time we're literally running out of cash on fumes for 18 months. But we still hit $20 million in sales that year because I had spun up that new specialty IVIG focus, which is wild. And so we just kept having small and smaller EBITDA with the same amount of sales, which was painful, but definitely, definitely had some good, good growth.

The problem is we couldn't service any of our debt. About 200,000,000 K a month in debt.

Payments that we couldn't make $200,000 a month just to service alone. That is a big boy loan. Joe, the $2 million in EBITDA that you lost from the 90% reduction in what did you call it?

The AWS AWP. So you lit, so you, it was a 4 million dollar EBITDA business and then that killed half of your EBITDA, correct?