RE:Again regarding financial statement Q1 There are a few points worth mentioning.
1) Variable rates are higher at the end of Q1 versus fiscal year end.
2) In addition to variable rates being higher, the first quarter does not capture the complete interest expense that will appear on future financial statements as the latest acquisition did not occur at the start of Q1.
You have increasing debt and increasing variable rates for at least another few quarters. Btw, when interest rates come down, that is not necessarily good news because that's just confirmation that the recession has arrived. That could be a big blow to its business as a poor job market can make things difficult for them. I am not convinced that the company will make more money when people will be losing their jobs.
At the end of the calendar year, the debt will roll over into a 7.5% promissory note of a principal amount of $7,721,802. The interest expense over a 12 month period on that alone will be ~ $579k which is going to be a challenge for them in a tough macro environment.
As of Q1, total debt (excluding bank indebtedness) =
$ 9,072,836
Total debt minus cash = $7,889,241
You better hope they can be profitable for the year or else they can run into problems. Accounts payable is also $162,117 higher than accounts receivable and that doesn't help.