Post by
phoenix_trader on Mar 30, 2020 12:33pm
Accounts payable $1.8 mill, $12k cash, spending $400k/mo.
So says the Jan 31, 2020 financials filed last week.
Trutrace needs $5 mill now to pay debts and meet ongoing costs.
No mention of cost reduction measures.
From the MD&A.
Liquidity
At January 31, 2020, the Company had $12,176 (April 30, 2019 - $1,163,219) of cash on hand. The Company does not have any long-term debt, and, therefore, any liquidity risk relates to its accounts payable and accrued liabilities, as it may encounter difficulty discharging its obligations.
While the Company has been able to demonstrate the ability to raise capital to fund its operations to date, it has not yet been able to generate the sales volumes required to create positive cash flows from operations. Whether and when the Company will generate sufficient operating cash flows to pay for its expenditures and settle its obligations as they fall due subsequent to January 31, 2020 is uncertain.
The Company considers the items included in capital to include shareholders’ equity. The Company manages its capital structure and makes adjustments to it in light of changes in economic and business conditions, the financing environment and the risk characteristics of its underlying assets. In order to maintain or adjust its capital structure, the Company may issue new shares, new debt, or scale back the size and nature of its operations. The Company is not subject to externally imposed capital requirements.
Management intends to regularly review its ongoing level of cash flow from operations, as well as its level of capital resources, and actively manage its affairs. This review will consider factors such as the current economic environment, changes in demand for the Company’s services, capital spending requirements, foreign exchange rates, working capital needs, and profitability of the Company’s operations, any of which could materially affect the Company’s ability to meet its obligations.
Comment by
knowSomething on Mar 30, 2020 1:18pm
Well written - glad somebody here can distinguish fact from fantasy. I still say this company is doomed so long as investors keep following this lounge lizard lawyer. The concept was good but short sighted and poorly executed due to lack of integrity from the top.
Comment by
ChipWinkleman on Mar 30, 2020 1:52pm
You're still bashing this company? I remember when you were posting about how smart you were shorting DNAX at .09c before the name change and it immediately shot to .45c. Lol you must have lost a lot of money to still be bashing them on here years later. Maybe waiting until a stock went from $1 to .09 to short it wasn't the smartest move! You need to just take your losses and move on
Comment by
Investdetective on Mar 31, 2020 2:43pm
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Comment by
COvidiOTSgaLore on Apr 03, 2020 1:51pm
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