Q3 Financials Released on SEDARFor anyone interested, the Q3 Financials are now available on the SEDAR Website.
Notes, Comments & Questions I have are listed as follows:
1). I noticed for the first time a $20,000 deposit on Contract on the Balance Sheet. It happened in Q2... but for some reason I never saw it until now. It actually affected the Statement of Cash Flows as well.... so in reality, I read this as a payment that QNC paid someone, but have the ability to get back. Does anyone else see this and/or have any comments? I have not personally asked management, so now I am curious. What would this “contract” entail?
2). Talk about running lean! Q3 loss of $140k that only burned $136 of cash. With $424k of cash in the bank, they could run this for 6+ months easy at similar burn rate. To me this suggests that management still has to be on the ball here. They cannot afford to be backed in a corner with tight cash flows, but I also feel they have a bit of time to wait for news releases to increase share price before announcing a PP at minimum dilution.
3). Expiration of Stock Options.... I see three things here:
i) 130,000 Options expired in September 2019 (at $0.13)
ii) 250,000 Options expired with end date of December 2022 (at $0.12)
iii) 700,000 Options available at strike price of $0.10 with date of expiry in Nov 2022
The 130k expiry in September verifies to me that management had no clue that this EPO Intention to Grant was happening as soon as it did. I am sure in hindsight, $0.13 cent options would look good on an investment that appears to be de-risked. I know I would buy those in a heart beat given the chance.
The 250k expiry for 3 years out to me is weird. Why would those expire? Does anyone have thoughts or comments on this?
Last, the 700k available at $0.10 could be good news! It gives the ability to get in on an investment that should be derisked.... and, it would generate an additional $70k cash flow to company here at a time when cash is becoming scarce. An extra $70k cash buys another month if needed. IMO, if these are not excersized, there is big trouble here and we all need to sell immediately...
4). The last thing I see is that there is no post dated reporting event info. We all know the Grant intentions have happened here after the end date of Q3, however this tells me that they do not have the “official” piece of paper in their possession yet to be fully de-risked
That’s all folks!
I am looking forward to hearing any other info/comments/views etc.. that anyone else can add.
Good Luck Longs!
FI4