RE:Read the latest financials!!! Financing Needed.Important to repost Thinkahead's original post which was burried by nonsense by Wazzuppp and Artecdesign:
Read the latest financials!!! Financing Needed.
Noka filed their most recent financials this past week on SEDAR. No news release of that filing was made so I don't think anybody noticed.
However, Noka's financials look like they are quite informative.
GO TO SEDAR.COM AND DOWNLOAD THE NOKA INTERIM FINANCIALS FOR THE PERIOD ENDED FEBRUARY 28, 2014.
These financials were posted in the evening of April 30th (Wednesday night at 6:24PM) and were for the period ending February 28, 2014. The related MD&A is also available for download.
You seem to need to go to www.sedar.com to get the financials as I could not find them on the Noka website.
The February 28 period included the $1M financing.
According to their financials, from a cash flow standpoint, material inflow was the financing net amount of $882,589. Against this was outflows of $383,353 for exploration and outflows of $392,709 for operating activities.
According to Noka, cash on hand as of February 28th (and this is AFTER the financing) was $106,791.
According to Noka, they had a further $165,000 in share receivables (i.e. late comers to the financing) and $59,000 in marketable securities (100,000 shares at AEX, then $0.59, now $0.40), so call it another $225,000 in "other resources".
That would provide Noka with about $330,000 as of the end of February 28th in current resources. They had some $127,000 in prepaid expenses and $40,000 in receivables (but those are not likely liquid and may not be recovered to use for daily operating costs), so I will stick with the $330,000.
Now, Noka also indicates they have accounts they need to still pay of $211,939 and a loan payable of $34,000, for current liabilities of $245,939.
Even if you include prepaid expenses/receivables as a useable asset (questionable) to get about $500,000, net of the current liabilities ($245,000), it would seem that Noka had no more than about $255,000 of resources left after the financing and at February 28th.
There have been no financings since February 28th that weren't accounted for in their February 28th financials, so the resources they have been using since February 28th total about $255,000.
From this, they will have needed to pay the operating costs for both March and April (and some of May). In addition, there would have been legal and Canada Stock Exchange costs associated with the Lodge deal (so this expenses this current quarter could be higher).
Let's just use the last quarter of expenses. For the most recent three months, they had the following cash expenses (I've removed non-cash items like share payments). Consulting fees: $62,856; Management Fees $45,000; Office & misc $15,687; Professional fees: $33,871, Rent $25,430; Shareholder Communications and Investor Relations: $63,903 and Transfer Agent: $7810. These add up to $254,557. So, in other words, outside of the costs of any exploration, Noka spent cash of $254,557 to "run Noka" in the last reported 3 month period. As an aside rent of $8000+/month seems like a nice office, not that it matters too much in the overall burn-rate.
If we assume this quarter is about the same operating costs as last (a reasonable assumption), then Noka is spending about $85,000 per month in operating costs ($255K/3).
It would seem based on the above math and reporting by Noka, that if they had ~ $255,000 of liquid resources (and that number depends on ability to convert receivables and prepaid expenses) on February 28th, then over the course of March and April, the combined $170,000 burn-rate ($85K X 2), would have, assuming all things equal, reduced their cash on hand down to about $85,000.
So, as of May 1, I figure using my math above that Noka had about $85,000 worth of current assets to satisfy their obligations starting around May 1.
If their burn rate continues as they reported last quarter, $85,000, it would seem that Noka could run out of cash this month, i.e. $85,000 uses up $85,000.
Now, based on my calculations, that $85,000 appears to be fully spoken for in normal operating expenses in May. It does not include any exploration work that might need to be funded or property deals that might need to be funded. In other words, even with no property acquisition costs or exploration work, Noka's current assets and current liabilities seem to be soon approaching each other.
As I see it, Noka needs to raise money and quick!!! Funds seem to be needed even just for operating expenses, never mind exploration or property payments.
The market is tough on junior uranium exploration companies so if they need to raise money where will it come from? If they can raise more money (potentially significant dilution) then obviously cash needs will be met and the inverse is also true.
Any financing in my opinion is likely to be at a significant discount to market to attract interest, or in the form of secured debt which means shareholders come second to the debt holder in a liquidation event.
All my opinion but the financials don't seem to hard to read.
Read more at https://www.stockhouse.com/companies/bullboard/v.nx/noka-resources-inc#1UyKMShPGLMrIWF0.99