Book Value Per Share Shareholder equity:
Q3 2020: 295M
Q3 2021: 252M
Fully diluted BVPS
Q3 2020: 2.50
Q3 2021: 2.13
Q4 2021E: 1.69-1.85 (my estimate - see below)
The only rational explanation (outside of fraud or personal enrichment that led to abrupt firing of CEO and CFO) for the delay in financial statements is taking a significant charge.
With the debenture financing and payments to Paul and John. Then there is the corporate restructuring announcement that is essentially notice to employees that they could be severed. With an $11M annual run rate corporate cost, it typically is $1-$1.5 charge for every run rate savings. So I estimate at least a one time charge of $20 million for the "restructuring" plus other q4 fees.
On top of that there could be impairment to the IRD Ukraine system as well as the write down of patent assets to reflect the lower value in the marketplace.
Total charge of anywhere between $30-$50 million.
This gives you shareholder equity of $200-220 million or $1.69-1.85.
There are strict rules around what can be included in a charge and what qualifies as "notice" and that perhaps is what makes the auditors uncomfortable. Quarterhill will want that "below the line"... auditors probably want that above the line.... leading to a disagreement and a delay
The stock usually trades to BVPS so it will be important to see the extent of the charge.