$4.47 Million LossAnyone paying attention to the latest financial statements? The company was hit with another loss. This time it's a $4.47 million loss. Hopefully investors here were smart, heeded the warnings, and pulled their money out before the stock dropped. Speaking of which, it now sits at $0.30. That’s clearly not good.
The latest financial statements and MD&A now provide a little more detail into things however the wroters worked very hard at putting a positive spin on a horrible situation and poor management of everything. Don't fall for the fake news. For example, boasting that it is expanding into various global markets. This might seem encouraging however it is actually an admission that the demand for the company's products in the American and Canadian markets have plummeted and that this is a desperate attempt to try and make something stick somewhere. There is no clear plan, strategy and focus and this makes it obvious. As well, the filings also boast about the many new different products it offers. That's BS. There really isn't any true diversification and, judging by the reported sales figures, these new products are obviously not selling. There are plenty other examples of the BS spin (the Edmonton factory, retail product sales, senior management competency, etc.) but I would be spending too much time here. Anyhow, be careful about the spin. They do it to deceive all of company’s stakeholders, especially investors.
The company is still not out of trouble. The fibre issue is still not resolved. The company still doesn’t produce any of its own product and it is just a middleman. Too much expiring inventory. Supply chain problems. It is involved in several legal cases for the wrong reasons (all avoidable). Most of management and many of the employees are not qualified for their roles. Accounts receivables are risky. Cash flow is a major problem. Employee turnover is high. A bogus patent. Trademark/branding problems. I could go on.
Be careful with this company...