OTCPK:NCNNF - Post by User
Post by
ipanemaon Sep 30, 2019 9:30am
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Post# 30177105
Today's results
Today's results We will see the results for the quarter and year ended June 30 later today. I expect the bottom line to reflect an increased deficit as a result of getting the farm ready, as some costs will be unable to be either capitalized or included in inventory. Sales in the quarter who knows, but hopefully encouraging.
The quarter to September 30 will be the first fun one as management will be able to make a Fair Value adjustment as per the accounting rules for the 80 acres of nearly harvested and harvested product. That value could be enourmous as 40,000,000 grams with a $1.00 adjustment, which is low, is a quick back of an envelope indicator. Of course its non cash and anticipates profit ahead of the sale. I encourage management not to go too high and leave more than 50% of the profit until the actual inventory is realized/sold. I also encourage management to provide weights and volumes in the MD&A and in the inventory section of the Fin Stats to faciltate meaningful analysis for those of us who are fundamentalists. Final request to management is to please back out the fair value adjustment when arriving at EBITDA. You haven't in the past and that IMO is below you. Lets do the right thing like the big boys please.
Finally, like everyone else, I hope that in the conference call and Q&A tomorrow management provide some insight into the first harvest and also the upcoming harvest.
GLTA