ORAGIN Foods Inc V.OG.H

RE:RE:RE:RE:RE:RE:RE:RE:Insolvency Filings Incoming?

[financemajor]

rwfresh wrote: I don't think they will convert. They will just continue collecting 80k interest every quarter.

They don't really seem to have significant cash-flow problems. They just completed major renos. They are done. Expenses are way way down this quarter compared to previous couple of quarters. If they simply focus on selling groceries they can eliminate any cash flow issues. Seems to be what they are doing.

What does this mean? "Expenses are way way down" -- can you please say what you mean by this? I can find no supporting evidence for this. I know you are not referring to costs of sales being down because that would be in relation to sales being down in general and silly. The only other cost that I can see that is down is stock-based compensation, which is volatile and will vary between quarters. Otherwise, expenses/costs were actually up all-in-all -- so I really don't understand this one. 

How can you say cash-flow is not a problem when the company lost money on operating activities last quarter? This has nothing to do with the money they lost over financing/investment matters. Cash flow is always a problem when a company has a working capital deficit of close to $4M, high debt obligations, and is losing money every quarter. 

I think you are putting way too much value into the recent renovations on one of the stores. You do not know how much it contributed to loss-of-sales. The problems definitely run deeper than renovations -- it seems pretty ignorant to echo the company and suggest this is the problem that is now automatically going to be fixed due to the renovations being completed.