Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

Bullboard - Stock Discussion Forum Empower Clinics Inc EPWCF

Empower Clinics Inc. is a Canada-based integrated healthcare and medical device company with multi-disciplinary clinics. The Company provides body and mind wellness for patients through its medical clinics, digital and telemedicine care, medical diagnostics laboratories, and sale of medical devices. Its segments include Health & Wellness, comprising clinic operations, patient visits, and... see more

GREY:EPWCF - Post Discussion

Empower Clinics Inc > just in case...
View:
Post by inviolablspirit on Jul 14, 2021 1:03pm

just in case...

...you missed an explanation on the financials I'll post it again, before Steve needs to explain it to those who still don't understand the $25 million loss.

 

The $25 million loss is a fair value loss on the warrants due to a rise in the share price.  So in Q1 they converted 41 600 547 warrants and the average price of the conversion was $0.70 for a $0.10 warrant, so that's a difference of $0.60.  Take the $0.60 x 41 600 547 warrants converted = $24 960 328.  This where there are getting the $25 million loss from.  

 

It's not a real loss because they received cash from those warrants and are using that cash to expand and grow the company.  So it actually becomes an asset.  So the $25 million fair value loss can be ignored, as it's just part of the way the Black-Scholes option pricing model works.  Again, the proceeds from those warrants actually becomes an asset, as it is used to grow and expand the company.  30 + clinics at $2 - $3 million a year = $60 - $90 million/year and the addition of company's like Kai, Medicare, etc... I would definitely say that is a great use of the cash from those warrants.

 

So if you look at the revenue of $2 036 700 and the losses/expenses of $744 053 (clinic expenses) and $1 403 181 (operations loss) = $2 147 234.  As you can see Steve has brought this company to a break even and will soon be moving on to being profitable once those clinics and other aquisitions are added to the revenue stream.  If there are still more warrants being converted in any of the quarters, then that will also show up as a loss in each of those quarterly reports.  Hopefully investors like myself and Steve won't need to keep explaining this.  Once the warrants are all converted they will no longer show up as losses, but as those weird accounting losses (not actual losses) show up that means the company has received more money for the expansion and aquisition of more clinics and other businesses to add to it's porfolio.  All leading to more revenues!

 

The Q1 financials is certainly not what people think it is and in fact the results are actually pretty good if you understand what you're looking at.  It shows the company has continued to move upward and is in a great position just as Steve has said in his interviews.   He hasn't lied, some investors are just not understanding the numbers.  

 

So let me explain the warrant situation in more detail.  When the $0.10 warrants were given out the company share price was somewhere in the range of $0.04-$0.08 if I remember correctly.  Now if the stock price never increased then the warrants would not be exercised and they would eventually expire. The company would still be at about $0.08 with no cash on hand to grow and expand.  

 

However, the share price did take off and so investors holding those warrants exercised them and the company got cash to grow and expand.  What the Black-Scholes option pricing model is saying is because the warrants were exercised at an average price of $0.70 and the money from the warrants are worth $0.10 the company loss $0.60 worth of price in converted warrants or $25 million dollars.  So this is not a real loss.  Again, if the share price didn't go up the company would not have gotten any cash to grow.  It's just a very confusing way to express the warrant conversions as a loss, but it's not a real loss.  If you believe that it's an actually loss then some how the company loss $42 million in two quarters ($17 million from Q4 and $25 from Q1). LOL!!! Give me a break.  Where did they lose that money?? lol  It’s not an operating loss and it’s not an expense loss. If the company actually had $42 million to lose over two quarters then the stock share price would need to be somewhere in $100 range or more!  lol 

Now some people may call me a pumper for trying to explain the financials to those who don't understand that $25 million dollar number showing up as a loss.  They do this because they are shorters and they don't want investors to be educated on their investment.  The shorters rely on fear and panic in order to make their money.

Comment by inviolablspirit on Jul 14, 2021 1:25pm
Grabbing a company like Medisure is very forward thinking of Steve in building this company as you can see from Bill C-237 Bill C-237  Also piloting MedX Health's teledermatology screening is an incredible grab for the company.  A news release that I've always thought never got the excitement and respect that it should have.  This is a great addition to add into the ...more  
Comment by 1Hornet on Jul 14, 2021 1:44pm
Oh so please explain why the share value has fallen today? And further to that, maybe try and explain why the CEO isn't providing us with another of his paid interviews as promised? Actually your explanations fall short in the face of the reality we the share holders are currently experiencing as we watch in real time the ramifications of the release of the q1 financials upon our own bottom ...more  
The Market Update
{{currentVideo.title}} {{currentVideo.relativeTime}}
< Previous bulletin
Next bulletin >

At the Bell logo
A daily snapshot of everything
from market open to close.

{{currentVideo.companyName}}
{{currentVideo.intervieweeName}}{{currentVideo.intervieweeTitle}}
< Previous
Next >
Dealroom for high-potential pre-IPO opportunities