TSXV:HIRE.H - Post by User
Post by
jdsd0517on Nov 24, 2021 12:25pm
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Post# 34161927
Looks weak
Looks weakLooking past the revenue bluster to numbers/issues that really matter:
- operating cash flow for the quarter was negative $1mn. given how hard it was to raise the last round, they can't keep operating like this
- working capital is a mess.
- DSOs have amped up sharply on increasing sales. they need to get on top of this.
- why did other accrued liabilities jump almost $2mn in a single quarter?!? what is in there?
- balance sheet is a mess. 64% of assets are Goodwill and Intangibles, which may well need to written down when a year end audit is conducted (see further down about management judgment and Atlas ID)
- in Q3 of last year they invested $200K in Atlas ID. Seven months later they had to write it all off. Who does the diligence on these kinds of deals?!?
If this thing is going to create any value, they need to get their operating chops together and stop wasting money on buying new companies.