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PyroGenesis Inc T.PYR

Alternate Symbol(s):  PYRGF

PyroGenesis Inc., formerly PyroGenesis Canada Inc., is a Canada-based high-tech company. The Company is engaged in the design, development, manufacture and commercialization of advanced plasma processes and sustainable solutions which reduce greenhouse gases (GHG). The Company has created proprietary, patented and advanced plasma technologies that are used in four markets: iron ore palletization, aluminum, waste management, and additive manufacturing. It provides engineering and manufacturing expertise, contract research, as well as turnkey process equipment packages to the defense, metallurgical, mining, additive manufacturing (including 3D printing), oil and gas, and environmental industries. Its products and services include plasma atomized metal powders, aluminum and zinc dross recovery, waste management, plasma torches, and innovation/custom process development. It offers PUREVAP, which is a high purity metallurgical grade silicon and solar grade silicon from quartz.


TSX:PYR - Post by User

Post by GrahamBon Nov 07, 2024 7:20am
157 Views
Post# 36300429

Financials: 30,000 foot view first Pass on the balance sheet

Financials: 30,000 foot view first Pass on the balance sheet

Saw the press release, which was encouraging at first, but I course have to dig into the full financials, and have been able to work through the length of SEDAR and able to pull them out and I'm just working my way through it now.


Got a first look at the full financial statements, and I’ll give a couple ideas here and pleased to hear comments. Again, based on factual data from the company as I just read it. 

As you know, I have focussed on the liquidity issues, so I’ll start there looking at the balance sheet
 

Just doing this by voice dictation so if there’s typos or errors and numbers, feel free to correct and let me know and I’ll rerun it

 

Liquidity Analysis

Current Ratio:Current Assets / Current Liabilities - ratio below 1 typically raises liquidity concerns and pyrs current ratio has decreased from 0.71 to 0.59, or decreased ability to cover short-term obligations with liquid assets.
An X here

 

Cash PositionCash dropped significantly from $1,802,616 at the end of 2023 to $38,716 in September 2024. This Decline is something that we have seen, and commented on, and is an issue with meeting short-term needs and  signals elevated liquidity risk-in case of unexpected expenses or delays in receivables.
Another X

Accounts ReceivableReceivables are relatively stable, slightly decreasing from $9,266,665 to $9,258,330, but collection efficiency has been some thing highlighted many times, so any improvement is welcomed, but details on the reason fof these receivables will be looked at, so I’ll readmda  shortly
For now a +/- meh

 

Total Current Liabilities Current liabilities increased from $23,811,144 to $26,017,746. Notable components include term loans (from $117,500 to $930,000), adding to the increased debt burden|
my take- PYRs reliance on short-term debt is high, with a substantial portion of liabilities due within a year.

Convertible debentures, loans, and increased term loan obligations add financial risk im

The high level of current liabilities relative to current assets also raises liquidity risk, making the company more vulnerable to cash flow disruptions.


Shareholder Equity and Deficit Shareholders' equity decreased from $(2,828,571)$ to $(5,146,550)$, reflecting an increasing deficit and comprehensive loss IMO this  impacts both solvency and the ability to attract investors.

Deficit and Comprehensive Loss:
The deficit has increased from $(121,889,032)$ to $(128,709,102)$, indicating ongoing losses.
 

AS I See it…

The company faces considerable liquidity challenges, with a high reliance on short-term debt and a declining cash position. Its current ratio is below 1, signaling inadequate short-term assets to meet liabilities, and its debt structure increases risk, especially in terms of obligations coming due. Additionally, the increase in shareholders’ equity deficiency isn't the right trend of course 
just wondering if this balance sheet impairment may have resulted some of those topline changes I saw on the PR but I'll go back and circle around on that one unless anybody else wants to do that

 

Again, it’s the 30,000 foot view just of the balance sheet will take a look at the cash flow statements and the income statements later today, unless anybody else wants me to stab it at first and then save me the effort!
 

We could use the wolf here, he has excellent analysis, and I follow him so maybe we can get his opinion

 

Again, this is only my opinion, for interest only not information to invest or not within this company. For that you should always talk to a financial advisor. For me, this is entertainment, only, and education that I learned from interacting with others. Mostly those who are willing to have a discussion of afacts, but also I learned from the behaviour of pumpers, And how to avoid traps based on promotion

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