Post by
Bookworm28 on Aug 09, 2021 8:56pm
Financials
Just read the June 30 financials.
Looks a bit rough:
- net income loss of 1.8mm vs. june 2020 gain of 4.8m
- cash and a/r of ~3.4mm while c/l of 14.4 mm... = ~11mm shortfall in working capital
I excluded inventory, as that's not going to help a whole lot in a cash crunch
- revenue down 60% from comparable period
- another rescheduling promissary note repayment 'til december
A bit concerned about the sales strategy that results in longer sales cycle. I'm not a financial guy, but a longer sales cycle when you don't have an abundance of cash on hand doesn't seem like a very good combination. A $125mm equity deficiency on the bs doesn't evoke a lot of comfort.
No guidance, and an ambiguous statement on the demand for lithium batteries also makes me a bit uneasy: 'Furthermore, while demand for lithium ion batteries from the materials handling electric vehicle sector is emerging, there is associated uncertainty with the future rate of growth as early adopters start their purchasing decisions.'
How do you guys read these results?
I'm thinking it's time for a consolidation, a shakeup, and a look at strategic alternatives - e.g. merger, and a big private placement - if they can get it. Just my opinion.