To Keep Up With TraditionFollow up to Feb 14, 2022 post.
A re-post and revision/addition: and for those that may not know, 'nada' means 'nothing' in Spanish. lol
From what I can see on Sedar, April 23 was the BoomA 18 module sale.
Module sales:
April 23 - BoomA announcement
April 24 to May 24 - nada
May 24 to June 24 - nada
June 24 to July 24 - nada
July 24 to Aug 24 - nada
aug 24 to Aug 31 - nada
Sept 1 - Freshhub announcement (2023 install)
Sept 14 BNN interview - "we will be announcing several more of those in the not too distant future" . - I guess we should define what "not too distant future" means.
Sept 2 to Oct 1 - nada
Oct 1 to Nov 1 - nada
Nov 1 to Dec 1 - nada
Dec 1 to Dec 14 - nada
Dec 15 2021 to Jan 10 2022 - nada
Jan 11 2022 to Feb 14 2022 - nada
Feb 15 2022 - Mar 7 2022 - March 7th 27 modules Green Valley (Manitoba sale). Good. Finally a sale. When is the install?
Earnings out today too and look as expected. I realized before that the cash burn rate was high with such high overhead but even this shocked me. Items to note from earnings,
Cash end of Sept 2021 was ~$14.5MM
Cash end of Dec 2021 was ~$21.3MM
A financing was closed Nov 24 2021 for gross $20MM
Is it just me then, or would they have been nearly broke if they didn't do the November raise? If the gross raise was $20MM November 24 and they had ~21MM on the balance sheet Dec 31 2021 doesn't that mean if they didn't do the raise they would have had almost nil cash? We are now at the end of Q1 and I don't see any notable revenue generated during the quarter so I am afraid to ask what the cash position is as of this writing.
I also note the G&A alone was ~$16.4MM for 2021. Not surprising given the staffing levels but they have (had) ~$21.3 Dec 31, 2021. That doesn't take in to account cash needed for 2022 R&D ($7.5MM 2021) and cost of sales ($6.3MM wow for 2021) whatever those amounts will be 2022.
I also note more comments that are yet again going to be missed. The December interview noted the install of the Wyoming Hydrogreen deal would be installed end of Q1. Now it is "construction is progressing well" and " expected to begin feed production late Q2".
December interview "We will not need to go to market for the foreseeable future". Ok. I have my doubts but let's see.
December interview "close to announcing a deal for a potato farm in Ontario". Nice. When is close? time will tell.
FreshHub was also noted in the December interview as to be installed by end of 2022. Now it is "expected to be installed in 2023". As well, from the Sept BNN interview, "we will be announcing several more of these in the not too distant future"
I've also made note of this before because this occurred last year too that they did some retrofitting to existing client equipment where I asked my self then if the equipment was ready for market? I also asked myself, if I was a prospective customer would I buy now or wait for the latest revisions to occur? Same as anything else, do not want to buy something that is out of date tomorrow even though most things are out of date by the time they hit the shelves anyway. But this equipment is significant and revenues are to be generated from it. It's not like buying the latest phone. The retrofits continue according to the MD&A.
"The Company incurred approximately $1,309,000 related to retrofitting, and $207,334 of inventory write downs for the twelve months ended December 31, 2021."
Write downs were due to engineering changes also noted in the MD&A. Maybe this is a good thing longer term, don't know. I would assume so though as a prospective customer, personally I would hesitate committing capital to a purchase but everyone has different risk tolerance. Nothing written in stone here though, I just asked the question.
I've also always wondered if the China manufacturing would be a struggle. It has been noted in the 2021 MD&A that there have been shipping delays in China. I understand the benefits of cheap labor and manufacturing and kudos for planning and having manufacturing capabilities ready but is the cost savings more than offset by delayed revenues and market disappointment? i.e. is there really a savings? The Hydrogreen modules are made in the US, I don't think SD would be fond of importing their modules. Just a guess though.
Out of all of this, one positive is if they can offer SaaS especially as a stand alone product. I think that would be powerful and I also believe this is achievable. Just a hunch but I believe they have the right people in that regard. When this may happen, if ever, is the question.
Last words, I could go on here with their own commentary from various sources (all publicly available for anyone to see and read) and what has subsequently transpired after company commentary that I have noted before. I see a significant disconnect between words and actions and for my own investing criteria I do not feel confident in purchasing shares especially at this point in time if a raise is nigh. Personally I can't see how this can be avoided but maybe I am missing something.
Even a skinny rabbit and smaller hat would be a good thing right now.