PyroGenesis Inc T.PYR

Question on financials reporting

[ClubberLang01]

Can someone explain what is rationale for choosing to use change in fair market value of their ownership interest in HPQ as a line item on income statement. Like, PYR revenues were $17M last year but then the change in value in HPQ added $44M. B that's just due to change in share price....not actual revenue or income. So instead of a $1.3M loss it's $40++M "total revenue". I thought it was more typical to include actual profit from ownership interests in other companies (which in this case would be a loss). I just don't understand why you would choose to include the change in market value of a related penny stock which is highly volatile and that has little or no revenue at present. And while it helps to make it appear revenue/EPS at Pyro was better than actual, what happens in Q1 2021 when HPQ share price has plummeted....will Pyro show a similar loss on income statement due to adjustment in fair market value of HPQ?

I just would've thought Pyro would record the investment at book value on balance sheet and then include any % of net income or loss on their income statement based on their ownership (and perhaps make adjustments due to impairment or goodwill on the balance sheet).

[Casavantsghost]

“Mark to Market” in investopedia and there you will find your answer and with this 67% increase in throughput for Generation 1 of the nano reactor to be realized in Generation 2 and so on..., we will all live much wealthier if you’ve INVESTED legitimately and be happily ever after grateful for having the acumen to invest in such a gem. If one is to be intuitive and recognize the sewing the seeds

[canyousayiii]

To get the full answer you will have to look at the PYR's accounting policies and disclosure related to that item, and the relevant International Financial Reporting Standards. It is probably driven by the nature of the ownership/control and as the statements are independently audited and the item is probably the most material one on the statements, you can accept that the treatment complies

[Casavantsghost]

Yea it’s why it’s a separate line item so a sentient being can make a determination on the viability of the company’s performance based upon those separate items, separately.  It’s not hard. The long bloviated question as asked, is the bigger question for those who can discern. That wasn’t hard either.

[ClubberLang01]

Thank you for your responses. I realize the accounting side of things, and that they are permitted to choose to report in this manner, I'm just not sure whether it's helpful to the company.  It looks great when the HPQ share price is increasing. And in terms of reporting as a separate line item, yes that is noted, however when publishing their earnings reports the headline is: 

[Casavantsghost]

Now ya see... and there it is.. lol.. Cracks me up. They MUST report it as “Mark to Market” by LAW,  but you know this.. lolol..  Have you ever heard the term.. “I didn’t just fall off the turnip truck”? So yea... there are quite a few of them right here in this forum.. I know... I know.. hard to believe right?

[ClubberLang01]

Mark to market is not a requirement by law at all. It is an election. There are alternate methods available which would likely provide smoother reporting. And that was the crux of my question....does anyone know why they elected to report in this manner. Do you understand?  And there's no need to get so aggressive in your posts, it only makes you appear weak. 

[itwillbeoknowok]

This post has been removed in accordance with Community Policy

[ClubberLang01]

What purpose is a chat room if not for sharing opinions?!  I thought that's what the whole point is. Almost all the posts in stockhouse are a matter of opinion aren't they?.  The irony is you even start your second paragraph with "in my opinion their powders division for 3D manufacturing will see some increased numbers now that they have a production line in play that was

[damnyourugly]

Peter discusses why they chose to do this in one of his videos on Agoracom. It is in the video that discusses Q3 earnings. I would suggest watching it instead of relying on anyones opinion on this board.

[ClubberLang01]

Great thank you

[ClubberLang01]

Great thank you 

[Casavantsghost]

Oh it’s law buttercup. https://en.m.wikipedia.org/wiki/Mark-to-market_accounting#History_and_development You are not stupid so stop playing it. Mark to market is an industry standard and you know it is, We will see what becomes of your short post history this far. Unfortunately these forums are used for nefarious conduct so you’ll have to forgive us for sniffing suspicious entrances out. 

[Casavantsghost]

Clarification: there are laws that govern should you choose that reporting methodology as you say so in that I stand corrected. You’re handle is new so you are still on notice.  I will give you the benefit of the doubt until you prove otherwise. 

[canyousayiii]

Companies choose a reporting framework and then they follow those Standards. They are not "laws" but theybhave to follow certain standards if they wish to be listed. A good example that they are not "laws" is that some of the stuff has to be reported differently for tax purposes....such as capital cost allowance for tax purposes for certain equipment for tax purposes are on a

[Pitpitcolisse]

Don't forget HPQ's r&d is done by PYR, they know what is coming up . It's been analysed on every financials and brought up by bashers every month at least since I've been with PYR and every long term investors know that those earning bigger than revenues aren't only from business, it doesn't change the many product and markets sizes they are looking at and for which we

[anydaynowplease]

According to GAAP it would need to be reported the same way each quarter.  You can't just do what suits you best each time.