RE:RE:Trevor Rose's Insights - Don't BuyWho was easy to find , with its existing syndicate of bank lenders led by
HSBC Bank Canada.
Not an accountant but it might be the same issue mentioned here in
Quarterhill Inc.
Management’s Discussion and Analysis
For the three months and year ended December 31, 2022 and 2021
March 21, 2023
The Company was not in compliance with the Fixed Charge Coverage Ratio and Senior Leverage Ratio covenants
of the credit agreement as of December 31, 2022. Following year end, the credit agreement was amended to
provide that the Company did meet such covenants at December 31, 2022. Because this amendment was agreed
to following year-end, for financial reporting purposes under IFRS, the Company did not have the unconditional
right to defer the repayment of the debt beyond twelve months and, as such, the outstanding balance is presented
as a current liability as at December 31, 2022.