Q1 Results coles notes 2023 Q1- GSI
The Good
-Sales Increase of 81% (Best Q1 to date)
-Paid down $3.5M on LOC & $3M in Payables - $6.5M reduction in Liabilities
-Collected $5M in receivables
-+90 days A/R has decreased from 30% to 25% of A/R
-No inventory write downs
The Bad
-Cash balance is shrinking & may need to tap into more funds through credit facility ($6M avail)
-Assets reduced by $6.5M (Cash down $1.75M, A/R down $4.8M)
-Gross Margin decrease
-No new contracts, changes or updates on existing leads
-Operating expenses increased by 24% - Not terrible nor unreasonable for a 81% increase in sales activity
-COGS increased by 241% - pointed largely due to increase in U.S. Tariffs, working on strategy to mitigate these
- Operating Loss