RE:PYR Q3 Financials MISLEADING comments re:liaiblities Great Post!
Here is a link to all financials.
https://www.pyrogenesis.com/financial-reports/
Here is a link to basic financial definition of deficit vs debt.
https://www.thebalance.com/deficit-vs-debt-how-they-affect-each-other-and-economy-3305779
developbc wrote:
For those who want to really understand and NOT be mislead by soft/hard bash comments that are misleading:
Q3 2019 Liabilties:
- Lease Liabilities $4,215,782 - under IFRS Rules this must be stated under any commercial lease term even IF there is a 'escape or demo clause' etc. Treat it as prepaid lease if one must but it is not actual $ debt.
- Term loans [note 12] $596,808 - $214k is tax credit loan whereas tax credit comes in it is paid off. $275k is relataed 'friendly' promissory note to CEO that will be converted to equity. Only $107k term loan is actual debt
- Convertible debentures [note 13] $2,800,443 which was extended to June 30,2020 w $300,000 paydown from $3M oustanding to equal $2.7M of actually debt but could be converted
- Billings in excess of costs and profits on uncompleted contracts [note 11] $3,893,312 - is as stated. Percentage completion -Accounting anomaly whereas collect faster than work completed but IF company stops this amount is NOT payable.
- Accounts payable and accrued liabilities [note 10] $3,319,094 less $192K(paybable to CEO)= $3.128M is actual debt and must be paid. Only up $1M from prior fiscal year end. Completely fine in normal course of business.
Properly discerning actual hard debt taking in consideration IFRS Accounting requirements:
$2.7M convertible debenture + $107K term loan + $3.1.28M acct payable = $5.928M debt
It is NOT the $15M debt as one poster claimed OR the confusion of the $55M deficit.
Which brings me that exact point of $55M running deficit whereas the company will be able to use tens of millions $ tax writeoffs for future profits is of huge value moving forward.
All this is really a big nothing . With over $30M committed to come in.. $5.9M debt? for a company ramping up their world renown tech to now about to change the world disrupting MANY industries. Awaiting incredible news from future potential contracts from multi-billion dollar producers is truly amazing. PYR is once in a lifetime investment :)