RE:RE:Targeting profitability calendar year end 2014 ?I agree completely with illumination1. It is a beautiful and long story the MD&A , but earnings forecast will probably not be in 2014. But the big picture remains strong, just look at the confidence of the CEO and directors. IBC will show 400/700 percentage increase for EM in 2015. As always JMHO GLTA LIQUIDITY AND CAPITAL RESOURCES
At September 30, 2014, we had working capital of $3,486 including cash and equivalents of $1,084, as compared to working capital of $2,680 at June 30, 2014. Factors affecting our liquidity include:
Copper Alloys generates enough cash to independently support its operations, but Engineered Materials will have to generate additional business to generate positive cash flow. We continue to support Engineered Materials’ operations, primarily to acquire beryllium inventory.
The main limitation on our cash position is the cost of maintaining our corporate office and corporate development initiatives. Related to this are restrictions imposed by our banks that currently prevent us from transferring funds from Copper Alloys to our other segments. Consequently, at present, our corporate office, research and corporate development activities are entirely dependent on our ability to raise equity funds.
To support our cash position, directors and officers have deferred $290 of compensation to September 30, 2014.
We have materials purchase commitments, as detailed in our financial statements, which may exceed our operational needs with the result that we over-invest in inventory. While we currently have more inventory than we need, we expect that increases in production will restore inventory to a normal level.
In September 2014, BMO Harris Bank extended the term of our line of credit to December 31, 2015 and the maturity of our term loan to September 30, 2019. At the same time, the line of credit was increased from $2,500 to $3,500.