questions for conference call part threeCash flow;
17. How is Sunniva going to survive even a month or so, with just 4.3 million in cash????
. At December 31 2018 the accounts payable and accrued liabilities amounted to 14,320,000 dollars according to the audited financial statements. What are the payables now , at the end of April 2019.?
Where will the cash come from to fund upcoming payrolls in May , and payments to suppliers???
18 An unanswered question is whether the sales of Sunniva products will be profitable in the second quarter of 2019, and provide positive cash flow, or at a loss, and further use up cash?
19 Why not provide an eight months future cash projection for investors???. Such a projection would show an estimate of the capital costs to be funded over the next eight months, the cash going out every month, and the cash coming in on a monthly basis.
20 I see the auditor in their report on the December 31 2018 Financials said, in their report,
...... matters set forth in Note 2 indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern.
The question is of course, is, will this statement make it harder to raise money in future Private Placements.?
I realize these questions are negative. Further you may object to the discussion around the questions as again far too negative. I last posted three months ago ,and in those posts my comments were seen as myopic and deceiving by one reader!!!
Last December I predicted that Sunniva would need another private placement in mid first quarter 2019, as they were running out of money. I was ridiculed and told that the spin off would happen far before a private placement was needed. But i was dead right. However, I was dead wrong when i predicted the share price in April, would be about half the price it is today. So I am one for two in predictions.
Two more predictions;
1 Despite 7.5 million dollars sales of Sunniva products in the first quarter of 2019, I am predicting the net loss recorded in the first quarter financials ended March 31, 2019 will exceed 7 million dollars.
2 I predict another private placement _ who know the terms _ announced within 30 days from now.
The release of the first quarter financials will answer some of the questions above. Such as, where did all the cash go last quarter, and if Suvvina product sales are at a net profit or a loss after expenses.
I don't expect anyone to read through all three posts above, but i do expect some, to perhaps point out flaws in the comments and related questions.I made.
The ... all we have to wait ,and all will be well,,... seems to be the opinion of many. I am obviously not certain that will work.
After we get some more facts at the end of the month, I will write another post.
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tks to you read all the way through this.
time for a glass of good wine.