More losses! As expected, the company has suffered another multi-million dollar loss! No surprises here.
Investors should be very suspicious of the reported slight increase in revenues. Things are not what it looks like.
Have investors noticed that that accounts receivable sit at $3.6 million while accounts payable are at $14.8 million?
A red flag is the fact that the company blamed its financial woes on of a lack of supply. If that was the case then why are its inventory levels so high? You would think that a company that can't meet demand wouldn't have $14 million in inventories sitting around, right? You would think that if demand was so strong that the inventory levels would be at or close to zero, right? A lack of supply is not one of the company's problems. That would be too easy to fix if it was the case.
Has anyone asked the company why it had supply issues? You know, the main reason was that the company has serious cash flow issues, couldn't pay its bills, and were cut off by their contract manufacturers. That’s what happens when you are a cash strapped middleman brokering a product that lost all of its value. IMO purchasers would be wise to buy their product directly from the manufacturers in China. Removing rhe middleman can allow food manufacturers to save time, money, and headaches.
The company claims that does not anticipate further large write downs. When did the company register write downs in the first place? Don’t recall ever seeing that being reported before. There is doubt surrounding this statement considering that reported inventory levels have hardly changed.
And isn't it interesting how the MD&A completely ignores the very serious FDA issue?
The MD&A makes a lot of claims and promises but investors really need to be careful. The company just does not have the strategy, plan, vision, leadership, and people to generate prosperity for investors. Invest at your own risk.