RE:RE:RE:RE:RE:You Can't Pay Your Bills with Accounts Receivable Sure, if the balance sheet is clean, you have no debts and don't need to raise money, and you don't have to buy any equipment, the operating activities portion of the cashflow statement could represent the required cash burn which is about $5 million.
i try to appease the pumpers by giving more benefit of the doubt, which usually still shows that a concern remains no matter how rosy of a picture they try to paint.
As to the gross margins, I won't dig into them too much. Even at a 12 point increase, they are still far from breaking even.
The pumpers pump the record backlog, inquisitive folk wonder about the relationship between reported revenue and backlog. Again, I don't worry too much about the details. At $55 million this is still woefully short of the type of stuff on various fronts that they use to hint on, to say it mildly.
But the backlog figure to be informative, needs to be dissected for timeliness. Even if the whole backlog was turned into revenue, the company would make a few million bucks according to my napkin math. If they don't, they will continue incurring losses.
Here are a couple of illustrations. The backlog includes the latest $27 million contract. This contract is to be implemented over 3 years. Take a straight line assumption and that amounts to $9 million revenues per year for 3 years. Each quarter requires more than this revenues to break even.
in 2020 they announced a $11.5 million contract for waste disposal systems for two ships to be built over 18 months. This year's news release included that the construction of one ship started in 2022 and is set to deploy in 2029. The other is set to deploy in 2032. So, has PYR built and delivered these systems and the $11.5 million is done with and has been reported in previous financials. I will not dig to find that out, but there is some likelihood that the work has not been completed so part of that is sitting in the backlog and may be realized over a number of years.
But again, who cares. Everyone expects more of these contracts and more frequently. That is the narrative. When revenues were growing in early 2020 the CEO went on a show and stated how the trend would continue. It was broken that year with significant declines. Let's a $50 million or a $100 million contract! Those are small ones compared to sizes spoken of before.