RE:RE:Aleafia Current Financial Highlights
this is from there website.
-22- ALEAFIA HEALTH INC. Unaudited interim condensed consolidated financial statements.
ALEAFIA HEALTH INC.
Notes to the Interim Condensed Consolidated Financial Statements
For the nine months ended September 30, 2021 and 2020
(Amounts reflected in thousands of Canadian dollars, except share and per share amounts)
has recently experienced credit risk associated with its accounts receivable and intends to do a credit assessment
on customers with concentration risk.
Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The
Company has experienced recurring losses and has a cumulative deficit of $409,275. Cash flow from operations is
negative due in part to the high rate of revenue growth the company has experienced which has driven a
requirement for working capital and selling, general & administrative investment.
As at September 30, 2021, the Company has total current assets of $69,894 and total current liabilities of $65,750,
providing for net current assets of $4,144. Within its current asset base are cash and cash equivalents and
marketable securities of $11,338.
The Company’s objectives when managing its liquidity and capital resources are to ensure sufficient liquidity
to: meet its financial obligations and execute its operating and strategic plans for at least the next twelve months.
Management closely monitors the liquidity position and expects to have adequate sources
of funding to finance the Company’s projects and operations. The Company manages liquidity risk by: seeking out
new debt and equity financing options, reviewing its capital structure to optimize the cost of capital, maintaining the
continuity of equity and debt funding options, managing its non-cash current assets to ensure the timely conversion
to cash, and putting in plans in place to meet its financial obligations as they come due.
The Company has multiple options to meet its liquidity needs including: converting its non-cash working capital to
cash, issuance of common shares via its at-the-market equity financing program, issuing common shares via a
public equity offering, share capital, and seeking out new debt financing options.
The Company’s ability to meet its commitments to sustain operations and settle its obligations as they become due
within the next twelve months and its exposure to liquidity risk is dependent on the Company’s ability to:
• Refinance or amend the term of its convertible debentures and credit facility;
• Raise additional debt and equity financing; and
• Realize cash flow from operations which is subject to significant judgements and estimates, the most
significant of which is the Company’s sales projections and its ability to realize its assets and discharge its
liabilities in the normal course of business.
While, the Company has been successful in obtaining financing to date and believes it will be able to obtain sufficient
funds in the future and ultimately achieve profitability and positive cash flows from operations, there can be no
assurance that the Company will achieve profitability and be able to obtain sufficient financing in the future on terms
favourable for the Company.