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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 10, 2024 6:22pm
242 Views
Post# 36305909

You Can't Pay Your Bills with Accounts Receivable

You Can't Pay Your Bills with Accounts ReceivableChecking in, and seeing lots of discussion on the liquidity concerns, and how contracts are being announced, and all will be well.
Maybe-but lets look at verifiable data from Q3 from the company (unaudited)
.
The current cash balance of $38,716 and a quarterly burn rate of approximately $8,134,330, the indicates an urgent liquidity issue, as the available cash is far below the amount needed to cover operating expenses even for a week.

Yet the company continues….

Since the ownership clearly wants this to continue-we know there are regular cash infusions/debentures etc that are happening.

To me the point isn’t that-it is the issue of the poor efficiency of the business, and the risks of this strategy even if they can keep pulling a rabbit from the hat.

For example, the accounts receivable are a source of cash that should be available now-yet look at the financials.

Now I read a poster crow about a 20 million contract-but remember you don’t get paid with the contract upfront unless you are Amazon-everyone else needs to do the work, maybe get some milestone payments, BUT there can be holdbacks as well with milestones

-SEE below….
Aging of Receivables:
Current: $1,174,793 – Hopefully  to be collected soon.
1–30 Days: $20,041 – Also fairly recent and typically collectible.
31–60 Days: $280,617 – Moderate age, but still within a reasonable collection timeframe.
61–90 Days: $295,626 – Starting to age; may need follow-up for timely collection.
Greater than 90 Days: $12,158,646 –what ! Come on - This is a significant amount that is overdue, indicating potential collection difficulties or delays.

One thing to note is the aging of the receivable- its not aging gracefully like saying someone doesn’t look their age-they look way older.

At least 80% + is over 3 months old!
Wish I could push off my bills like that. Usually I get a text saying they will repossess my house (actually that was a scam call from my admirers from another continent, and to tell me I was left 10 million, if only I would give them my account numbers and the OTP on my phone).

The other question is how do you fulfill a new contract (let alone pay the massive bills on the accounts payable) if you don’t have cash-well 38k, but that puppys been spent by Oct 2nd based on the burn rate.

Well go to the bank?  and I showed the growing debt already and interest payments, issue stock-to who? , debentures to insiders...etc.

Basically, its running on fumes IMO.

Not saying they wont get some much needed cash, but I am saying the numbers-which are only 40 days ago-look scary
 
But, hey for interest only-don’t invest on what I say-talk to a professional, don’t trust what you read here(goes both ways there-don’t trust a pumper IMO who calls out blue skies) This is for education, entertainment-not to invest with-at least not for me no thanks
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