Current and projected revenues and liquidity concerns Hi all
Hope everyone had a nice weekend
Thanks to Science First for tipping me off to this company-it’s a puzzle
So as noted on SEDAR "PyroGenesis recorded revenue of $5,657,783 in the third quarter of 2022 (“Q3, 2022”), but ended up with a net loss of 4 million"
So the bull case is that there are future contracts of 26 million the company posts but promoters here are saying there are many more in the pipeline.
(So again the age old argument about looking forward vs the current facts)
To help solve the dilemma...
Interesting reading in the MD&A.
What does the company say?
Well on page 30 they state:
“The Company notes that until such time as it produces consistent recurring revenue or have continuous large-scale orders which would enable it to offer forward-looking guidance, it would not be prudent to provide an Outlook focused on financial numbers. As such the Outlook, will continue to be of a more descriptive nature, focusing on a combination of actual achievements combined with working opportunities.”
Meanwhile they also state the 26 million is :
“As of November 10, 2022, revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially satisfied) is $25,965,367. Revenue will be recognized as the Company satisfies its performance obligations under long-term contracts, which is expected to occur over a maximum period of approximately 3 years."
So 3 years…
But did anyone note the Current liabilities are that amount -and since current
Are we looking at a cash crunch?
And really are we comfortable looking forward and being confident about future revenue when the company explicitly says they aren't and even the 26 million due is over 3 years and matches CURRENt liabilities?
Are we looking at another cash raise?
Thoughts
New to this company and just an idiot independent investor
-all for entertainment-do your own due diligence and don't invest or not based on my idiotic posts
All quotes from SEDAR.com