Accounts payable $1.8 mill, $12k cash, spending $400k/mo.So says the Jan 31, 2020 financials filed last week.
Trutrace needs $5 mill now to pay debts and meet ongoing costs.
No mention of cost reduction measures.
From the MD&A.
Liquidity
At January 31, 2020, the Company had $12,176 (April 30, 2019 - $1,163,219) of cash on hand. The Company does not have any long-term debt, and, therefore, any liquidity risk relates to its accounts payable and accrued liabilities, as it may encounter difficulty discharging its obligations.
While the Company has been able to demonstrate the ability to raise capital to fund its operations to date, it has not yet been able to generate the sales volumes required to create positive cash flows from operations. Whether and when the Company will generate sufficient operating cash flows to pay for its expenditures and settle its obligations as they fall due subsequent to January 31, 2020 is uncertain.
The Company considers the items included in capital to include shareholders’ equity. The Company manages its capital structure and makes adjustments to it in light of changes in economic and business conditions, the financing environment and the risk characteristics of its underlying assets. In order to maintain or adjust its capital structure, the Company may issue new shares, new debt, or scale back the size and nature of its operations. The Company is not subject to externally imposed capital requirements.
Management intends to regularly review its ongoing level of cash flow from operations, as well as its level of capital resources, and actively manage its affairs. This review will consider factors such as the current economic environment, changes in demand for the Company’s services, capital spending requirements, foreign exchange rates, working capital needs, and profitability of the Company’s operations, any of which could materially affect the Company’s ability to meet its obligations.