JohnnyTSX wrote: Reviewed MD&A, BS, and CF Statements, some observations to share:
- Balance sheet is relatively stronger now than in 2015. Cash is down, but AR is way up - combined, this is indicative of the revenue growth reported, however also worth noting that AP hasn't grown year over year. This is important as based on the operating expenses year over year and gross margins, this suggests that anyone concerned about dilution shouldn't be, as it isn't necessary. If the company needs to raise capital via dilution, it will be for something that increases shareholder value significantly and not to fund current operations.
- On the cashflow statement (which is the most important and least favorite of the financial statements as it tells us where the money went, IMO), the money is tied into working capital. AP is static year over year, AR is up, Prepaid expenses (asset) are up. The companies' ability to cashflow operations is not in any jeopardy based on the December 2016 statements.
In summary, if cashflow was funding operating losses, that is the time to get concerned.
That is not happening here. Further, the company has next to nothing for debt. That is also important.
IMO, I expect the company will continue to focus on organic growth in 2017. More customers, especially on the Fox-Tek side as the margins are excellent there.
I look forward to seeing Q1, however as a shareholder with an accounting background, I see nothing that concerns me about these results.
Much like others have stated, this company needs to put together some commercial deals and growth news releases with $'s and the share price will undoubtedly rise and those patient enough will be rewarded.
Cheers & GLTA.