Third Quarter FinancialsLooks like they are operating in the red. From the Management Discussion
The Company has in place a credit facility of up to $2.1M through its bank based on acceptable trade receivables and inventory (amount outstanding as at December 31, 2016, $(1,735,693) which includes a letter of credit in the amount of $474,261). As at January 27, 2017, the available limit on the Bank credit line was $946,772 which limit the Company exceeded by $192,240. The Company’s analysis of forecasted sales and expenses indicate improvement in both sales and cash flow starting April 2017 as a result of contracts bid and or signed and their expected margins on these projects. The Bank advised the company on Feb 22, 2017 that it currently exceeds the margin levels allowed by the Company’s credit facilities in place. The Company is working with the Bank to remedy the margin excess including a Bank review of the Company’s cash flow forecast which forecast the Company cautiously expects will allow the Company to become in compliance with its margin requirements on or about the fiscal year end. However, the cash forecast is not guaranteed and is partially based on expected customer orders which may not take place or may be delayed and should (i) the Company’s bank credit facility fail to be available or fail to have sufficient availability to meet the Company’s cash requirements and/or (ii) forecasts fall short of expectations in one or more of the Company’s divisions, this will impact the Company’s ability to generate sufficient cash to meet its requirements and will impact its ability to continue as a going concern.