Q&A with Pierre VermetteI feel it's important to post this information which may help explain somewhat the financials of Oct 2023. Q1: Could you please clarify the reason why the Financials of Oct 2023 only account for the OQP Bio Bonds for &59,928,225 but not the cash portion of the agreement for $75,536,000?
Q2: And why was OQP Bio Bonds reported on Jan 31 2023 Financials for $76,388,109 reduced to $59,928,225 on October 31, 2023? Response Dec. 28, 2023: "At Oct 31 2023 for the OQP Bio bonds:
- Fair Value = $59.9 million
- Face Value: = $75,536,000 cash + $62.9 million bonds.
The fair value in 1 above is heavily discounted as a result of recommendations from our auditors to reduce the fair value to reflect the risk and uncertainty concerning the ability of Quest to monetize the bonds and receive cash payments from OQP Bio. Quest has not yet received any cash from OQP Bio and the first cash payment is still overdue and not paid.
The bonds have been reduced from $76.3 million to $59.9 million because of the above noted risks and lack of any cash payments so far from OQP Bio.
Best regards,
Pierre Vermette
CFO, Quest PharmaTech Inc.," G1945V