Weekly Analytics Brief — Amazon Operations

01 — Executive Summary

$50,921 Covenant Shortfall — Critical

Covenant Shortfall

-$50,921

$75,079 vs $126K target

Total Cash (All Banks)

$20,489

27.3% of covenant total

FBA Inventory @ Cost

$21,810

5,649 units, PO-confirmed

Unused Gift Cards

$30,812

⚠️ 41% of total — unverified

Gross Sales YTD

$39,605

Jan–Mar 9, 2026

Net Revenue (YTD)

$20,643

52.1% net margin

CRITICAL: The Amazon balance is $75,079 against a required minimum of $126,000 — a shortfall of $50,921. Immediate action required. Inform the covenant holder this week.

02 — Covenant Component Breakdown

$75,079 of $126,000 Required

Covenant Components

$75,079 total vs $126K target

Best / Worst Case Analysis

Impact of confirming in-transit POs

Component	Amount	% of Total	Notes
Total Cash — All Banks	$20,489	27.3%	11 accounts; QBO Balance Sheet Mar 9
FBA Inventory @ Cost (PO-confirmed)	$21,810	29.0%	5,649 units; 100% from PO Tracker
Inventory In Transit (Pre-FBA)	$0	0.0%	All 24 shipments in Receiving
Amazon Holding + A/R (net)	$1,967	2.6%	Holding $3,655 less negative A/R ($1,688)
Unused Gift Cards	$30,812	41.0%	⚠️ Redeemability unverified
GRAND TOTAL (Covenant)	$75,079	59.6%	of $126,000 required
TARGET	$126,000	100%	Amazon lending covenant minimum
SHORTFALL	-$50,921	-40.4%	⚠️ REPORT IMMEDIATELY

Gift Card Risk: Unused Gift Cards ($30,812) represent 41% of the total covenant value. If these are not redeemable, the shortfall grows to $81,733. Confirm with management whether these are live, active balances.

03 — Scenario Analysis

Even Best Case Falls Short

Scenario	In-Transit Added	Covenant Total	vs. Target
Conservative (all in Receiving = at FBA)	$0	$75,079	-$50,921
+ PO 1104 DeWalt (if confirmed in-transit)	$5,728	$80,807	-$45,193
+ PO 1104 & 1105 both confirmed in-transit	$7,109	$82,188	-$43,812

Key Insight: Even in the best-case scenario where both PO 1104 and PO 1105 are confirmed as in-transit, the covenant total reaches only $82,188 — still $43,812 short of the $126,000 requirement. The shortfall is structural and requires action at the covenant level, not just waiting for inventory to process through receiving.

04 — Monthly Sales & Revenue

Strong Growth: Sales Doubled Month-over-Month

Monthly Gross Sales & Net Revenue

Jan 2026 — Mar 9, 2026

Orders & Net Margin %

Volume and profitability trend

Month	Gross Sales	FBA Fees	Net Revenue	Orders	Net Margin
January 2026	$9,724	($3,705)	$3,958	804	40.7%
February 2026	$21,575	($5,452)	$12,670	1,072	58.7%
March 1–9, 2026	$8,306	($3,102)	$4,016	612	48.4%
TOTAL (YTD)	$39,605	($12,258)	$20,643	2,488	52.1%

SALES GAP FLAG: Amazon transaction report shows $39,605 gross sales (Jan–Mar 9). QBO P&L shows approximately $29,530. Unrecorded gap of ~$10,075. Need to reconcile all three monthly settlement statements against QBO journal entries.

05 — Inventory Valuation Summary

100% PO-Confirmed Costs

Inventory @ Cost

$21,810

5,649 available units

Natracare Value

$16,941

77.6% of total

Active SKUs

54

No estimates used

QBO Gap

$20,456

QBO $1,355 vs $21,810

Category	SKUs	Units	Value @ Cost
Natracare (feminine care & hygiene)	28	4,268	$16,941
Red Vines / Licorice (candy)	3	371	$1,277
Food & Snacks (misc organic)	12	668	$2,305
Apparel (Puma)	3	8	$172
Other / Miscellaneous	8	334	$1,115
TOTAL FBA INVENTORY @ COST	54	5,649	$21,810

Methodology improvement: All 54 active FBA SKUs have been valued using confirmed PO costs from the Weekly Charges tracker. This is a significant improvement over last week's report which estimated costs for 15 ASINs. No estimates used.

06 — Open Flags & Action Items

12 Items — 4 Critical

Critical

Covenant shortfall -$50,921

Gift cards and receivables needs explanation from management. Notify the covenant holder this week.

Critical

Gift cards $30,812 — unverified

Confirm redeemability with management. If not redeemable, shortfall grows to $81,733.

High

Negative A/R (-$1,688)

QBO A/R aging — find and correct the source entry creating negative receivables.

High

Negative cash (-$265.95)

Locate journal entry; recode to correct account.

High

COGS mismatch: $20,270 Jan / $704 Feb

Implement perpetual FIFO; match COGS to sold units. Massive monthly variance indicates method issue.

High

Sales gap $10,075 (Transaction Report vs QBO)

Reconcile 3 settlement statements to QBO entries. ~$10K in unrecorded revenue.

Medium

PO 1104 DeWalt in-transit status

Confirm with management: shipped before Feb 26? Would add $5,728 to covenant.

Medium

PO 1105 Ryo Root — shipped?

Confirm supplier shipped; then add to in-transit. Adds $1,381 to covenant.

Medium

Payments to Deposit ($2,914)

Clear weekly — match to bank deposits.

Medium

Ask My Accountant entries ($612)

Review and recode to correct expense accounts.

Medium

QBO Inventory $1,355 vs $21,810

Post monthly inventory adjustment entry in QBO to align with actual FBA snapshot.

Low

Feb 3 shipment (5 wks in Receiving)

Contact Seller Support if still unfinished next week. Largest shipment with unusual delay.