DE (debt / equity) ratio is 0.79, here's the proof.The Debt / Equity ratio at September 30 2021 is 0.79, and below are the numbers from the Securities Commission website www.SEDAR.com to prove it. Since Sept 30, 2021, the company has raised an additional C$5.7 million, making the balance sheet even more liquid.
Balance sheet is leveraged but improving. Debt equity at 9/30/2021 was 79.4%
Balance Sheet Analysis
Note that all analysis below is using balance sheet data as filed. During Q4 2021, CHAL raised $5.7 million in debt convertible at C$1.00 per share and due November 23 2024, and equity, with the equity priced at C$0.75 per share + half warrant exerciseable at C$1.10 per warrant (now out of the money), which will show up on the balance sheet at 12/31/2021. Source: SEDAR.com, press release, November 23, 2021.
From the SEDAR.com data, source cited below:
Total current assets 8,626,877 6,551,507 7,870,892
Total current liabilities 14,101,226 11,375,430 3,052,896
Total liabilities 27,575,197 22,545,813 21,039,328
Total equity 16,790,674 5,472,198 10,601,200
Analysis:
Working capital = Current Assets – Current Liabilities
9/30/2021 = 8,626,877 – 14,101,226 = -5,474,349
12/31/2020 = 6,551,507 – 11,375,430 = -4,823,923
12/31/2019 = 7,870,892 - 3,052,896 = 4817996
Current Ratio = current assets / current liabilities
9/30/2021 = 8,626,877 / 14,101,226 = 61.18%
12/31/2020 = 6,551,507 / 11,375,430 = 57.59%
12/31/2019 = 7,870,892 / 3,052,896 = 257.82%
Long Term liabilities = total liabilities – current liabilities
9/30/2021 = 27,575,197 - 14,101,226 = 13,473,971
12/31/2020 = 22,545,813 – 11,375,430 = 11,170,383
12/31/2019 = 21,039,328 – 3,052,896 = 17,986,432
Debt / Equity = long term liabilities / total equity
9/30/2021 = 13,473,971 / 16,970,674 = 79.4%
12/31/2020 = 11,170,383 / 5,472,198 = 204.13%
12/31/2019 = 17,986,432 / 10,601,200 = 169.66%
Source: Q3 Financial statements filed on SEDAR.com on November 19, 2020 and November 23, 2021
(Expressed in U.S. dollars)
September 30, 2021 December 31, 2020 December 31 2019
CURRENT
Cash $ 491,170 $ 905,149 $3,531,202
Accounts receivable Note 5 323,793 108,308 167,168
Other receivables Note 5 414,970 737,185 447,901
Notes receivable 1,576,206 1,576,206 0
Income Tax Recoverable 0 0 74,034
Sales tax recoverable 32,813 89,033 271,866
Biological assets Note 6 566,655 455,045 88,078
Inventory Note 6 4,603,057 2,304,501 2,965,304
Prepaid expenses and deposits 618,213 376,080 325,309
Total current assets 8,626,877 6,551,507 7,870,892
Property, plant and equipment Note 7 2,621,088 2,361,357 3,723,489
Other receivables Note 5 842,440 179,517 919,418
Right-of-use assets, net Note 8 5,307,935 4,132,035 4,333,064
Intangible assets, net Note 9 13,568,738 10,737,423 10,737,423
Goodw ill Note 9 13,398,793 4,056,172 4,056,172
Total assets $ 44,365,871 $ 28,018,011 $31,640,528
LIABILITIES
CURRENT
Accounts payable and accrued liabilities $ 4,070,488 $ 3,432,525 1,564,982
Interest payable 43,619 0 125,900
Income taxes payable 2,046,841 1,003,604 0
Deferred income tax payable 510,007 55,039 248,852
Sales tax payable 652,796 217,789 187,520
Current portion of long-term debt Note 12 25,846 22,171 82,404
Current portion of notes payable Note 12 417,338 119,533 0
Convertible debentures carried at fair value Note 10 0 5,575,273 0
Consideration payable - cash portion Note 12 713,280 0 0
Consideration payable - equity portion Note 12 4,566,390 0 0
Lease liability Note 11 1,054,621 949,496 843,238
Total current liabilities 14,101,226 11,375,430 3,052,896
Notes payable Note 12 1,706,243 0 0
Long-term debt Note 12 119,683 134,675 29,952
Long-term lease liability Note 11 5,408,452 4,372,395 4,090,806
Warrant liability Note 13 1,627,495 0 0
Derivative liability Note 10 170,742 0 0
Convertible debentures carried at amortized cost Note 10 2,832,208 0 4,706,141
Consideration payable - cash portion Note 12 1,569,758 1,824,533 4,218.866
Consideration payable - equity portion Note 12 39,390 4,838,780 4,940,667
Total liabilities 27,575,197 22,545,813 21,039,328
EQUITY
Share capital Note 14 164,336,386 149,754,502 147,763,499
Warrant reserve Note 15 170,901 1,079 1,980,217
Share option reserve Note 16 3,944,102 4,070,474 4,181,350
Contributed surplus 2,329,997 2,329,997 59,940
Deficit (154,347,596) (150,683,854) (143,383,806)
Equity attributable to shareholder of the Company 16,433,790 5,472,198 10,601,200
Equity attributable to noncontrolling interests 356,884 0 0
Total equity 16,790,674 5,472,198 10,601,200
Total liabilities and equity $ 44,365,871 $ 28,018,011 $31,640,528