RE:RE:NR this weekAs at March 31, they had $7.6 million in current assets to cover $15.7 million in current liabilities, of which $9.8 million was a current portion of term loans. Financial analysis 001 will tell you that this is an illiquid company with a very high rule of thumb of needing $2 in current assets for every $1 in current liabilitie (disregarding whether any inventory items can be converted into stated amounts in case of some forced liquidation). Effectively, the creditor is in the driver's seat and the FBA below ended July 31st. I think it is material information to know what follows this expired agreement. But then again, PG witheld a lot of important BC (negative) information that resulted in many shareholders' losses. And Global including write-off of some $28 million in accounts receivables without any prior allowances for doubtful accounts hit us overnight.
"On February 13, 2023, the Company entered into a Forbearance Agreement (“FBA”) with its secured lender for a six-month term up to July 31, 2023. Under the FBA the Company is required to remain current on principal and interest obligations and is subject to a minimum EBITDA and cash thresholds. Interest is payable on a monthly basis at Bank Prime rate plus 2% plus a margin (margin is between 1.25% and 2.0% based on the Company’s ratio of senior funded debt to EBITDA). Principal repayments equal to 1.25% of the drawn amount, payable in quarterly installments. The facility is secured by a general security agreement and Company guarantees. The FBA replaces a three-year maturing term facility was entered into during the third quarter of 2022. Due to non-compliance in fiscal year 2022 of financial covenants in connection with the 2022 term facility and revolver, the Company’s term loans have been classified as a current liability at March 31, 2023 and December 31, 2022."
I certainly think an update is material.