Naturally Splendid Enterprises Ltd V.NSP.H

RE:RE:Get out. While you Still Can.

[northman]

Yeah I mean I guess that came off a little cocky. Just trying to prevent people from losing their savings on BS companies.

I made this same call on another bullboard - FastTask Technologies. There was someone like you there too who didn't want to believe it would happen. Then it happened and another posted asked me to review this company so here I am.

I present to you the evidence based on March 31 SEDAR quarterly:

WORKING CAPITAL:
 $1.7 mm in current assets
less $$4 mm in current liabilities
equals - $2.7mm working capital deficit.

Woring capital is stuff that needs to be paid now to avoid bankruptcy. So they have to come up with $2.7mm quickly to avoid this. Three ways to do that: debt, equity, profits

Nobody would lend at this point, nobody would invest without taking the whole company, and they aren't making money. More evidence:

PROFIT & GROSS MARGIN:
We could assume higher revenue if we wanted to, it doesn't matter. Let's for arguments sake take Q1 2020 Revenue (high) and Q1 2021 costs (low) before COVID effects and see what happens:

1 - Q1` 2020 Revenue $720K
2 - Q1 2020 Gross Profit - $126k

3  - Q1 2021 Cash Operating Exp: $650K

4 - Cash Operating Loss - $525K

So even in a goldilocks world where they had a higher quarter of revenue and a low quarter of expenses they are still losing $500K per quarter. Now they have to come up with a way of paying off this looming $2MM working capital deficit and it has to happen now. And by now I mean within 6 - 12 months. This is not long term debt coming due in the future. These are bills to suppliers etc.. that need to be paid net 30/60 or your power gets shut off.

SO while nothing in life is 100% certain, this is 100% certain. Certain as gravity pulling you down hill, a crappy business and a working capital deficiency will pull you into bankrupcty.

The only way this won't happen is if someone comes in with a major equity investment which would likely dilute you to nothing anyway. So there you go. I am not a shareholder and never will be. I just can't stand to see companies like this continue and try and raise money on public markets with this or that press release while the average small investor loses their shirt.

Hope that helps you make a good investment decision.

Cheers

northman