TSXV:EVE.H - Post by User
Post by
reallyBobbyZon Nov 11, 2020 9:45am
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Post# 31876639
EVE's BIGGEST PROBLEM....GOING "CASH" negative/BURN
EVE's BIGGEST PROBLEM....GOING "CASH" negative/BURNFrom Eve's Q2 Financials [June 30/20 for 3 months prior].... Eve went "cash negative" $2,503,410 in Q2 [April/May/June]...which averages $834,470 per month of spending more than money received..."cash burn". At June 30, EVE had $1,042,011 cash on hand. That would have lasted about 5 weeks into Q3 if they continued with the same sales/expenses. So, at about August 8 EVE would have used up all its cash reserve. What happens then? Eve would try to lower expenses and slow down/not pay certain payables/debts. As of today, EVE is over 3 months into NEGATIVE CASH/BURN. If EVE's cash burn continued at the same rate, Eve is now about 3 months times $834,470 = $2,503,410 cash negative if operations were same as Q2. Question....what suppliers/debts are not getting paid on time?