Reading Science firsts claim tax credit would be material, or "Huge" in his words.
I dont think the project I read qualifies for a 30% rebate on CAPEX
As I read it they wouldn’t qualify , But let’s just assume they get it. The point is these kinds of points are distractions and avoid considering the cash flows and business of PYR.
To the point, as I read it or IMO-do your own DD)
From the most recent financials:
‘The use of cash by operating activities during Q2, 2022 consists of the net loss of $13,050,346 (2021 – net loss of $20,362,205)’
What about liquidity?
And ‘ at June 30, 2022, the Company has cash and cash equivalents of $1,291,508. In addition, the accounts payable and accrued liabilities of $9,404,542 are payable within 12 months.’
And The net cash position of the Company decreased by $5,321,116 for Q2,
What were the accounting earnings? The EBITDA in Q2 2022 was $12,341,307 loss
What does all this mean? To me it means that the liquidity is challenged, they are dependent on financing, and revenues to even keep the doors open. So a 30% tax back on an expenditure, for money that they don’t really have, since they only have 1.2 mill in the bank.
Don’t take it from me read what the company says on page 15 of the MD&A most recent one found on SEDAR
"Prior to December 31, 2021, the Company had a history of losses and negative cash flows. For the year ended December 31, 2021, the Company has net losses of $38,431,939, cash flows used in operations of $18,113,432, and an accumulated deficit of $61,217,831. To the extent that the Company has net losses and negative operating cash flow in future periods, it may need to allocate a portion of its cash reserves to fund such negative cash flow. The Company may also be required to raise additional funds through the issuance of equity or debt securities. There can be no assurance that the Company will be able to generate a positive cash flow from its operations, that additional capital or other types of financing will be available when needed or that these financings will be on terms favourable to the Company.
The Company’s ability to continue as a going concern is dependent upon its ability in the future to grow its revenue, achieve profitable operations, successfully developing and introducing new products and, in the meantime, to obtain the necessary financing to meet its obligations and repay its liabilities when they become due. While the Company has been successful in securing financing in the past, raising additional funds is dependent on a number of factors outside the Company’s control, and as such there is no assurance that it will be able to do so in the future. External financing, predominantly by the issuance of equity and debt, might be, sought to finance the operations of the Company; however, there can be no certainty that such funds will be available at terms acceptable to the Company, or at all. If the Company is unable to obtain sufficient additional financing, it may have to curtail operations and development activities, any of which could harm the business, financial condition and results of operations.”
Www.sedar.com
Ouch
Ok-thats my view for the weekend
All IMO-dont trust me-just an idiot independent investor
G