GREY:DLTNF - Post by User
Comment by
theanonymous1on Mar 11, 2021 11:28am
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Post# 32772671
RE:Looming Debt Issues
RE:Looming Debt IssuesAnd I would argue that not all debt is created equal. A large portion (roughly 1/3) of their debt is nothing more than their future lease payments that are required by International Accounting Standards to be capitalized and reported on the face of the financial statements (rather than as information in the footnotes to the financials).
Yes - it is debt. Yes - it will require future cash outflows. But keep in mind the type of debt you are looking at on the financials. In order to recognize Lease Liabilities on the financial statement as debt, they also have to recognize the offsetting Right-of-Use Assets up in the asset section of the financials.
Regardless - it is a very interesting time for this company. There's potential. There's risk.
GLTA.