StageZero Life Sciences Ltd T.SZLS

Warrant revaluation

[RelevantStock]

Can anybody explain what this is about? I am not familiar with this revaluation process and I am hoping the next q4 will be free of restatements of past ER's..... the MD&A seems to attribute that to "errors", I would like to make sure they cannot make a mistake of 6M.

[davewho]

I also have been wondering about that. Just what is a warrant revaluation and is it just an accounting issue or is it debt the company owes? We may need a CPA for the answer. Szls also just filed an amended QD&A tonite . Its on Sedar for those looking for weekened reading.

[Jonnyboy85]

Warrant revaluation is immaterial, I'll post some links about it when I get home. More or less, we owe people shares for our warrants, because the warrants havent been exercised they are considered a debt, but not really because we actually make money when they get exercised lol I've posted many times about how I hate warrant revaluations being included in our earnings calculations but

[RelevantStock]

Thanks Jonny well this is encouraging, thanks for the explanation. (6M) is quite heavy though in the report, I am having a hard time to figure out how this ER would be a good news with such a heavy loss. Aristotle also is scheduled early 2021 now, no more in 2020 but that was predictable lol.

[Jonnyboy85]

Ya it's just more of the short game, trading games, basher games, they're only doing it because they want in at lower prices or think they can get a few more penny flips in before a run so they'll accumulate more before it happens. The reality is everyone, bashers, pumpers, longs, everyone is here because of the long term positive direction we're heading in. We all see the same

[MSmitty2020]

Your explanation is good but not sure I see the dope earnings when you remove revaluations ... $1.5M for Q3 less costs of goods and admin of $2.2M equals a loss of $700k... what am I missing? That's where I am trying to reconcile ... we need more revenue to offset admin ?? Which we will do I believe 

[Jonnyboy85]

Ya I get you, I think oil2020 pointed it out earlier, our net assets doubled, which is again a true indication of where we are, which means we spent a lot if money investing in the company, I.e. reagents etc. So that's again is where people get confused, you make money but spend it, in our case we definitely have to pay upfront for tests before we sell them and process them, and finally get

[MSmitty2020]

Buying inventory of supplies does not get expenses it is inventory on the balance sheet as an asset until it is consumed then it gets expensed so that logic doesn't work for me ... unless they are not putting supplies to inventory in which case perhaps they should 

[Jonnyboy85]

Again, I'm away from my desk, I'll look over the report when I get home and highlight a few things for you

[Nailbiter1]

This post has been removed in accordance with Community Policy

[MSmitty2020]

No ... I thought you had the inside report that provided specific quarterly revenue expectations... we have a call now after PP so I will look forward to what analyst say... I would say it doesn't appear a sell off took place so confidence remains high ... day traders playing games doesn't count as a sell off ... IMO... still a great investment however looking for stronger communication on

[Jonnyboy85]

Sorry, I was mixing up two concepts, I was on a train of thought related to assets (will post about that soon:) when I replied. What I can tell you about the revenue calculation was that you can completely remove revaluations of warrant liabilities ( it's arbitrary and represents little to no cost to the company, in fact we make money from them), and you can remove $404,560 of share based

[Jonnyboy85]

My bad, I left out the change in value of the convertable debentures, it's not a true loss the same as warrant liabilities so it isn't required, but thats a story for another day. doesn't change the math below. night folks....except olteanu lol