October 31, 2020 yearend financialsHere are my comments on the annual statements. Keep in mind that 3 months have passes since the yearend date, and, as we all know, much has happened in that time. The first quarter financials in the next year should be published by the end of April? Here we go:
1. Working capital of the company sits at $10,700,000. Very nice!
2. Goodwill is an intangible amount, not a hard asset. Some of these costs have already been written off under "Other Items" in the Comprehensive Loss statement. However, as this company developes, the remaining value being shown should easily be recovered on an eventual sale or takeover of the company.
3. Share capital at yearend shows just over 86 million shares issued. Subsequent events indicate that present share capital would now be over 93 million shares.
4. Gross profit % for the year is just over 40%. Very nice also. One previous post said there was none?
5. Accounting and legal costs probably higher than what will be normal due to start up costs, patents, etc. These might be lower in subsequent years, barring any unusual legal situations.
6. Management and consulting costs include $374,000 to the former CFO. Hopefully this is the end of those costs?
7. Share-based payments represent about 1/2 of total expenses and is basically an accounting entry that does not affect cash flow. I would imagine this number will also decrease in future years, but, who knows?
8. There appears to be a claim against the company by a former consultant but no amount is mentioned. Management believes the claim is without merit
9. As mentioned previously, 3 months have now passed since yearend so the next financials will show a significant increase to sales and hopefully a decrease to operating expenses?
Hope this helps!
Cheers!