The only black clouds I seeThis is a great day for APHA and more importantly for its long-suffering longs. I think in 2-3 years we will look back on this QR, as well as the last one, as two of the biggest steps up and out of the big hole the company dug itself. But there are 2 aspects of this QR that have me a little bit concerned.
1. According to Technical420.com, the drop in Revenue was mainly due to changes in CCPharma business practices caused by a change in German govt regulations. I can't see in the QR notes and commentary any explanation of why, how and how much these changes may affect future revenues. Since CCPharma contributes more than half total APHA revenues right now, and will be a major part well into the future, this could significantly impact us. I'd like to see some clarifications from Mr Simon about this.
2. Way back on p. 31 of the QR is this: "As of August 31, 2019, the Company was served statements of claims in class action lawsuits against the Company and certain of its officers and former officers. These claims relate to alleged misconduct in connection with the Company’s acquisitions of LATAM Holdings Inc. (“LATAM”) and Nuuvera Inc., and the Company’s June 2018 securities offering.... The U.S. claims include alleged violations of Section 10(b) of the Exchange Act, Rule 10b-5 under the Exchange Act and Section 20(a) of the Exchange Act. The Canadian claims include alleged statutory and common law misrepresentation and oppression.." Are these new claims against the co., or are they just holdovers from much earlier? Good news is "the Company is self-insured for the costs associated with any award or damages arising from such actions" in the USA. But possibly not for costs incurred in Canada. There's no recorded uninsured amount in the financials. So again, more explanation about this would be nice.
But otherwise, this is an "A" reportcard.