It's Been AwhileIt's been awhile since I have posted. But I haven't had anyting to write about lately either. They have made a couple of sales, one in Hydrogreen and one with Cubic modules. All good of course but again, when will the cash hit the bank account? I default back to their own words that they expect revenues for the remaining quarters of the year to be "compressed".
With Q2 now in the past, I am curious to see the numbers and if they finished any installs. The revenues will tell the story but I am also very curious to see the cash on the balance sheet. I am still trying to figure out the last financing. It wasn't surprising that there was one since I was writing about it before it occurred but what was a little surprising was how small it was with their what I think is a high burn rate. Also interesting how the share price magically ended up at the financing price before the financing was announced Lol. Funny how that works.
Anyways, they are burning through cash and without cheques to cash I am wondering where the future cash will come from....will it be from large announced upcoming sales with associated deposits? large enough to carry them through? some actual realized revenues and associated cash flow? or was the thinking to do a smaller raise with anticipation that they will make some sales announcements and that would boost the share price at which time they could announce another financing at a higher share price? That's a big chance to take if that is the case. Markets are reflecting ongoing central bank raises, specifically the Fed, and markets are adjusting to this new reality so stories are and were obviously going to suffer for it as you can see.
One positive is they are onshoring some manufacturing it seems which I previously wrote about as well. China might be lower manufacturing costs but I asked the question of how much did they really save by doing this in lost potential sales and/or delayed revenues? Personally, while I understand the desire to control manufacturing costs (especially because Canada wouldn't be cheap) I think it is always better to control that close to home since there is a big ocean in between here and there and many companies and even countries are seeing the problem with this when the world wobbles.
I still say the share price will continue to drop. Seems to be floating now but the air is slowly being released from the balloon. If it gets to a more reasonable marketcap the I will be thinking hard about getting back in. Oh, and if you have money to waste, follow the Twitterites and their Tweets and article predictions that have all been so wrong I am almost embarrassed for them. :)