ONE UGLY BALANCE SHEETJust looked at this company and its 2019 audited financial statements. Those are some of the ugliest financals I have ever seen. Where do I start?
How about broke.
$275,000 cash and current liabilties of $739,000 on Dec 31, 2019. So they rasie some dough in early 2020. One stupid US$300,000 12% loan that goes to 18%! The two smaller rounds totalling about $930,000.
That loan was a desperation loan I bet in January. Management was probably getting calls on those $700,000 jn current payables.
So on paper it looks like the lights are on, with net $900,000? I wish. Just check out the monthly burn rate - it's insane. Management is taking in fees and salaries at mouthwatering $80,000 per month and the total burn for people and G&A is like $180,000 per month.
So that net $900,000 is bascially gone as at May 31 2020 which is like now. Stock is sinking and they have to dilute agan and it won't be at $0.40. More like $0.25 maximum discount to current price is my guess.
Nice asset, but the company is a financial mess and horror show.