Reliq Health Technologies Inc V.RHT.H

RE:Last presentation

[Reggie1]

She says in Red the reality in black

GM around 70%

67% why not just say what it was? 

We achieved profitability in the Q and thus EBITDA positive. 

That is simply just false. They were operationally CF negative by 5.2 million dollars. Its right there in black and white. And why were they negative? Its basic finance and any finance guy or accountant would be going nuts cause they are not turning recieveables and its killing them. So here is a lesson in basic finance whether its your home or a business. You want your cash coming in as fast as possible and you want delay paying people as long as you can hold off.

Example: RHT did a good job as accounts payable increased to 5 million dollars. This is good cause that cash stays in the company to do things with right? The bad part here is that recieveables or the money you want to come in BALOONED to $11 million dollars. That is just bad financial management which we all know about. But its also the reason the CEO cannot say EBITDA positvie cause its a false declaration. Why do you need to smoke this over Q after Q year after year. Anyone with an education in business or has run a business would see this for exactly what it is...A false representation. 

That is as far as i got watching I have no interest or need to watch any furher. The misrepresentations of the finance end of this company are enough for me and simply posting to help anyone insterested underestand cashflow via AR and AP and how it can actually help a company appear CF positive. 

Example: what you want to do is have recieveables drop right...we are bringing in cash quickly, people are paying us. Like have 5 million in AR and have 11 million in AP. Then its CF positive right. You are bringing in cash way faster than you are putting it out. You are holding cash and delaying paying it out. Its good finance if you need to do it. And as a CEO you would say something like we are CF positive because we are turning recieveables much faster than we have to turn payables. 

There whole problem right now is what is explained above. If the numbers were reversed for AR and AP there would be no financing cause they would have 6 million dollars in the cash account. So this is their problem financially and maybe she addressed it in the rest of the presentation. I just can't stand to watch that CEO anymore. 

But because of the sheer market potential I for some sick reason seem to think I might buy in again one day if it starts trending.