Red Light Holland Corp. C.TRIP

Financials

[BrokerG]

auI am not sure where to start with how bad these numbers are.And you wonder why the share price was going down before the release. Because the rats were leaving the ship

First, shares outstanding has increased to 355 million. Second, they gave Happy Caps, $772k in loans with no repayment. In other words, free shareholder money. Third, their cash decreased by 2 million in one quarter. Fourth their long term debt increased by 1 million from the SR wholesale acquisition. The market is telling you what it thinks. I have no idea what to do? HELP

[BrokerG]

I have not had the time to go through the whole Sedar report but Consulting fees, Management Fees, and Business Development cost us over $500k, this quarter. Not sure we are gettiing our money's worth are we Bruce?

[SamRothstein]

Bruce is also an advistor at Creso but TRIP got $400k in deal cancellation fees for that not going through.   If you look at the deals that did close this quarter they were pretty active.  And I think there is mostly likely another deal in the works.

[BrokerG]

I was not expecting them to be protitable this quarter either. However your reference to gross profit was a little misleading. We have a long way to go. In regard to the promissary note- look under the footnotes in Sedar- by the way 442,000 euros is = $772,000 CDN that I was refering to. The footnote clearly states- no payment forecasted. In regard to the Consulting and other fees my point was

[SamRothstein]

Fully agreed we have a way to go but TRIP continues to make great progress for a company this new.  I'm not really sure how my reference to gross profit was misleading, but if it misled anyone somehow that certainly was not my intent.   Re. the promissary note, it is 300,000 euros, which is $442,770 in Canadian.  There is no payment forecast because the note is due March 19

[BrokerG]

Hello Sam, Please see below,,Item 20 of financial statements: This is what I was referring too.  LOANS AND ADVANCES $772,674 of these loans are unsecured, non-interest bearing with no specific terms of repayment. These are advances from the minority interest holders of HappyCaps, and had been advanced prior to the acquisition. $124,005 is an equipment finance loan bearing an annual interest

[SamRothstein]

I'm a little confused by that because the chart in item #16 shows $896,679 of total Loans and Advances being due with 1-3 years.  See below.  Payments due by period Liabilities and obligations Total Less than 1 year 1-3 years 4-5 years Accounts payable and accrued liabilities 1,191,247 1,191,247 - - Lease liability 128,995 48,884 80,111 Loans and advances

[SamRothstein]

I'll have to dig through them later today when I have time but at first glance they seemed fine.  Still $29 million in cash and gross profits of $156,970, an increase of $61,240 (or 64.0%) over the previously reported quarter. Not sure about the details on loan to Happy Caps or debt from SR wholesale  but obviously something to do with the purchase of those businesses.  But

[BrokerG]

Thanks Sam but as you know gross profit is not net income. There operating expenses have increased substantially. Furtermore can someone please explain to me why we need a virtual reality dept?. I mean I have no idea what Sarah Haskins job is. Once microdosing can be sold recreationally throughout the world then maybe we need this virtual reality field. But for now this is just another expense to

[SamRothstein]

I realize gross profits isn't net income, but I wasn't expecting them to have net income yet. I don't think anyone was expecting that.  Most of the MJ companies that started up 5 or more years ago still don't have net income and TRIP is in business just over a year now.  As to the virtual reality dept I don't know where that will lead but I also think it is part of

[JackBNimble26]

Sam. Good partial response but let's be realistic. This is legal in only one country in the world that has a population of 17.44 million, slighly more numerous than  those living in Ontario. In Ontario. All the talk in the media is about decriminalization. TRIP cannot sell into a market where the product has been decriminalized but is illegal. So why would institutions buy into TRIP

[SamRothstein]

Actually besides Netherlands it is fully legal in Bahamas, Brazil, Jamaica, Peru and Nepal.  It has become decriminalized in a lengthy list of countries and jusrisdictions and that is first step towards it becoming legal.   Institutions might invest in TRIP when it has more revenue from legal products and services eg. AEM and MERA.  For frequency of consumption, with

[SamRothstein]

I'm trying to find the numbers you mentioned below but I don't see them anywhere?  I'm copying and pasting below from sedar . The promissory note for SR is not new, and it is $442,700, and can be converted into shares at $0.38.  And I don't see anything about a loan to Happy caps.  And you say they burned 2 million this past quarter, but using below figures from

[ezemoney]

NAV last qtr .13c/sh  NAV this qtr dropped .09c/sh

[SamRothstein]

Can I ask how you are calculcating that?  Looking at financials for quarter ending Sept.30 I calculated a NAV of $.1098 per share.  Total Assets of $43,166,429 minus liabilities of $4,121,791 equals $39,044,638.  Divided by 355,436,106 shares equals $.1098 NAV per share. For last quarter, ending June 30, 2021,  I see Total Assets of $39,875,987  minus liabilities of $2

[ezemoney]

Latest Outstanding shares is 364MM which maybe why your numbers are a bit different.  Also I go through loads of financials and I do a quick round off.

[SamRothstein]

Ok thanks.  Just to make sure we are comparing apples to apples, the NAV per share should use the Assets and Liabilities and share count of the same date, which in this case is the quarter ending Sept.30.  Because their assets and liabilities could have changed since Sept.30 along with share count.  As of sept.30 they had 355,436,106 shares oustanding, including basic and diluted

[ezemoney]

Balance, September 30, 2021 363,615,281

[SamRothstein]

Pardon me you are correct about the number of shares on Sept.30.  I was looking at the weighted average number of shares for the quarter,  which was 355,436,106, but the final number at sept.30 is listed as 363,615,281.   Which means that at Sept.30 the NAV was $.10737 per share. 

[ezemoney]

No problem Sam.  The main issue I have is that the op. exp./rev is running 4X, this is very high.  I really watch this closely.  These juniors drain shareholders equity with consulting fees etc.  I warned many times this was happening with the likes of RLV and now it is a 1 cent stock.  I see the same pattern here so be careful!

[SamRothstein]

Thanks and noted.   Hoping that by time next quarter is released there are more deals announced and more revenue which help improve that ratio.  And of course, hoping that there are no more shares are issued.