FormerXBC Inc XEBEQ

a year and 5 months ago

[Possibleidiot01]

I don't know if I'm impressed by the length of time it's taken new management to deal with the legacy RNG issues but it could be the turning point .

March 12, 2021

List of Extraordinary Items		Impact on Revenue
Xebec underwent a detailed review of its fixed price contracts for renewable natural gas (RNG) projects, where revenues are recognized based on the percentage of completion method. As a result of its review, Xebec determined that: Previously incurred expenses represented a lower percentage of total costs than previously estimated, and previously recognized revenue is required to be adjusted to reflect the revised percentage of completion for contracts that remain profitable under Xebec's updated estimates. Some of the contracts previously estimated to be profitable are now projected to result in losses. The percentage of completion method requires that the losses on such contracts be recognized immediately.		$5.6 Million
Cancellation of the sale of two systems for which approximately 50% of the revenue was already recognized based on the percentage of completion method.		$5.4 Million
Reversal of revenue previously recognized based on the percentage of completion method due to the deteriorating financial position of a client where collection for payment became uncertain.		$1.9 Million

$12.9 million


Friday

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• Captured remaining costs of legacy RNG contracts,as previously indicated in Q1 2022, with a special charge resulting in a gross margin (Non-IFRS) impact of $8.3 million, an adjusted EBITDA (Non-IFRS) impact of $8.6 million and a net loss impact of $11.9 million to encompass remaining costs on projects, potential penalties and warranty claims, an inventory obsolescence provision, and legal settlement and related costs

I have checked but earnings reports in the last 17 months have not specified costs ; if anybody noticed any additional writeoffs surrounding , please post .