RE:RE:I have been informed thatA few excerpts from the MD&A in reference to "recent" although some of this has been regurgitated from older MD&A's:
Recent Business Activities:
On June 30, 2019, Mr. Zelong He resigned from the position of the Chief Financial Officer of Zecotek ImagingChinaLtd.and Director of Zecotek Photonics Inc.
Revenue:
The Company recorded $nil revenue in the third quarter of 2019 compared to $3,563 in the same period in 2018, a decrease of 100%.
For the first nine months of fiscal year 2019, revenues decreased by 100% to $231 from $201,135 in the same period of 2018. Revenues are from the sales of LFS scintillation crystals (imaging division) to PET OEMs and scientific organizations that are testing and using our products. Due to specific customer requirements the timing of sales and revenues can fluctuate significantly. The Company has firm commitments for future delivery of crystals.
Subsequent to the quarter end, the Company expects to receive approval from Hamamatsu for the delivery of LFS scintillation boules produced by the LFS Scintillation Crystal Facility in Shanghai, representing thousands of LFS scintillation crystals. The deliveries cannot be booked as revenue until they are examined and qualified by Hamamatsu.
As at April 30, 2019, US$1.25million of the US $2.5 Million order for LFS scintillation crystals had not yet been fulfilled. Hamamatsu made the original order after reaching out to major end users of scintillation crystals, with whom it has had long term supply relationships for its detectors and other imaging components. The main users of scintillation crystals are PET scanning device original equipment manufacturers (OEM), and high energy physics centers such as CERN. Due to engineering design upgrades and internal integration processes at the OEMs the orders for the scintillation crystals have been delayed. Zecotek and Hamamatsu are working closely with the OEMs, and their scientific teams to expedite the integration process. Zecotek has started delivering preliminary amounts ofscintillation crystals to Hamamatsu which are being used in various end user's new designs.
Subsequent Events:
(a)On May 8, 2019; 1,785,000 stock options expired.
(b)ZIS offered a 2% equity interest in ZIS in exchange for USD 1.5 million. The funds have been received but due to a declining share price, the Chinese investment group requested to renegotiate the investment and the parties agreed to make it a loan convertible to shares when the restructuring transaction is finalized. An additional USD 1.5 million was invested by the same investor during the quarter for an increase in equity interest. The terms have not been finalized to date.
(c)Subsequent to the quarter end, Zecotek Holdings Singapore Pte. Ltd., of which Dr. Zerrouk is a majority shareholder is in the process of converting its preferred shares in ZDS, ZIS and ZOS to 10% of the issued common shares of each subsidiary, pursuant to a Share Purchase Agreement in 2006..
(d)Subsequent to the quarter end, the Company expects to receive approval from Hamamatsu for the delivery of LFS scintillation boules produced by the LFS Scintillation Crystal Facility in Shanghai, representing thousands of LFS scintillation crystals. The deliveries cannot be booked as revenue until they are examined and qualified by Hamamatsu.