RE:RE:2023 guidance Revenue and EBITDA guidance 2023:
- Minimum revenue of $225-million;
- Adjusted EBITDA margins greater than 10 percent.
They are still selling a dream and putting a positive spin. Look at their current Revenues and losses. Shares holders who have not learned a lesson yet, no one can help them.
They have debt. At the current burn rate, they have cash for less than 2 quarters. Debt holders will own the assets eventually. They have a debt of $38m account payable of 37m. They have cash of under $25m . They have account receivables of $29m . who knows how much is impaired. Their loss for the period was $160 m. Out of which $124m was impairment loss. The remaining loss comes to $36m for the quarter. There are some non-cash items too. The cash balance of $25m and $1.2m of marketable securities put this company at high risk of running out of money. They will survive as long as they can raise money from the market. New dilutions will be at bigger discounts.
I dont know how many times I have posted on this board that this company has a failed business model. Very low margins and is a cash-burning machine. Had also identified that the overpriced companies they were buying were major blunders and they will eventually be written off. Acquisition of Money-losing companies increases burn rate and results in major impairments and write-offs. This sector was adopting the failed DOT COM era model. Their biggest mistake was taking on the debt to fund their losses.
Reverse split and listing in US was an expensive mistake. That listing is in a jeopardy, let's see how they handle that. They have a tiny volume on the Us exchange. Will they do another reverse split?
Track record of blunders.
"As a result of the analysis, the company recognized an impairment loss on goodwill and intangible assets of $52.9-million and $67.9-million, respectively, for the three months ended May 31, 2022. In the same period, unrelated to the goodwill and intangible impairment charges, the company recognized impairment losses of $4.1-million on prepaid deposits, $2.8-million on assets held for sale and an inventory writedown of $13.9-million for the three months ended May 31, 2022." The whole sector has sold off the competition is ruthless. Most companies are undercutting each other and selling at a loss. Market share gain will not help if you run out of cash.