RE:RE:Q3 Results....Cipher earns $1.6 m US in Q3 Other Notes..
1....The Company received a notice of termination from Bausch Health for alleged breach of contract in respect of its licensing agreement for Trulance. The Company is currently in arbitration with Bausch to resolve the matters contained within.
2...Accounts Receivable was in excess of Accounts payable by Approx $5 million US at exit Sept 30
3...Book value increased to $44 million cad which is $1.60 per share
4...cash flows were $6.2 million US in the first 9 months. In the absence of paying $6 m US to pay off debt in 2020, that amount would have ended up in the cash position.
5....Going forward, Q4 is the strongest quarter of the year . With debt paid down , and substantial excess of AR over AP, cash flows will be substantial, and end up mainly in the cash position while book value will continue to increse
6...nearly $7 million US has been paid out for Trulance as part of the licensing process.
This will be returned to Cipher even if Bausch wins the ownership issue.
7..Absorica LD sales should accerlerate in Q4 which insure continuing cash flows from royalties on both versions
8...Cipher is now an attractive merger takeover candidate. This will be its exit..