GREY:CNTTQ - Post by User
Comment by
Analystguyon Mar 30, 2019 6:26pm
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Post# 29559287
RE:NUMBERS
RE:NUMBERSI did take an indepth look at the numbers. From my analysis, I believe there were some accounting irregularities that occurred during the year that KPMG sought to address with the 4h quarter results such that fiscal 2018 is stated correctly ( or as closely as they can account for). That may be one reason why financials were not available until the last minute. I can see the reason for a new CEO and new CFO as I read prior statements.
In looking at Q3, TRST jacked up its Fair Market Value adjustments to compensate for COGS. In doing so gave themselves an unrealistic gross operating margin of 100%. The ripple effect being to appear marginally profitable after tax in Q3. I don't think this number in retrospect is realistic.
In Q4, I suspect the KPMG flagged prior period results and made significant compensatory addition to COGS and FMV adjustments. This resulted in a negative gross profit margin of (.51).
There is no section in the 2018 Annual Statement that includes Q4 results. I suspect this is by design as it would show required adjustments. I patched together what I could glean from the annual statement and the Q4 MD&A so that I could get a side by side comparison. Below is what I came up with broken out by operating and financing activities.
| Fiscal Year = | 2018 | | |
| TRST | | Q3A | Q4A |
| grams produced | | 4,978,000 | 4,816,000 |
| Adult Use | | | |
| Gross Revenue | | 1,706,342 | 6,380,063 |
| Excise Tax | | - | (524,441) |
| Net Revenue (Adult) | | 1,706,342 | 5,855,622 |
| Dried grams and gram equivalents sold | | 266,616 | 1,389,992 |
| Gross revenue per gram equivalent | | 6.40 | 4.59 |
| Net Revenue per gram equivalent | | 6.40 | 4.21 |
| Medical Use | | | |
| Patients | | 50,000 | 58,000 |
| Gross Revenue | | 9,689,283 | 10,597,029 |
| Excise Tax | | - | (871,076) |
| Net Revenue (Medical) | | 9,689,283 | 9,725,953 |
| Dried grams and gram equivalents sold | | 1,097,314 | 2,016,945 |
| Gross revenue per gram equivalent | | 8.83 | 5.25 |
| Net Revenue per gram equivalent | | 8.83 | 4.82 |
| Ancillary Revenue | | 1,178,446 | 582,620 |
| Total Net Revenues | | 12,574,071 | 16,164,195 |
| Cost of Sales | | (3,869,655) | (10,489,000) |
| Adj. Gross Margin | | 8,704,416 | 5,675,195 |
| Gross Margin before FM Adjustments % | | 0.69 | 0.35 |
| | | | |
| Change in fair value inventory sold | | 5,222,601 | (84) |
| Gain (loss) on fair value biological assets | | (9,044,000) | (13,876,000) |
| Gross Profit | | 12,525,815 | (8,200,889) |
| Gross Margin after fair value adjustments % | | 1.00 | (0.51) |
| Expenses | | | |
| HeadCount | | - | - |
| General & Admin | | 4,381,790 | 6,880,000 |
| Marketing and Sales | | 4,318,217 | 7,448,000 |
| Stock based compensation | | 1,514,268 | 1,568,000 |
| Research and Development | | - | - |
| Total Expenses | | 10,214,275 | 15,896,000 |
| Adj EBITDA from Operations | | 2,311,540 | (24,096,889) |
| Amortization PPE | | 1,171,798 | 103,000 |
| Amortiation Intangibles | | - | - |
| Gain (loss) from operations | | 1,139,742 | (24,199,889) |
| Adj.EPS f.d Operations | | 0.01 | (0.23) |
| Interest Expense (Gain) | | 143,429 | (647,000) |
| Other Expense (Gain) | | (50,757) | 4,075,000 |
| Investment Loss (Gain) | | 109,179 | 109,000 |
| Accretion Expense (Gain) | | 62,643 | 62,643 |
| Transaction Costs (Gain) | | - | - |
| Writedowns | | - | 988,160 |
| Gain (loss) from Financing Activity | | (264,494) | (4,587,803) |
| Adj.EPS f.d Finance | | (0.00) | (0.04) |
| Income Tax | | 468,814 | (3,325,000) |
| Net Income | | 406,434 | (25,462,692) |
| shares outstanding f.d. | | 108,160,500 | 105,608,486 |