Good morning all,
Was on another board, and one of the posters asked me if I owned shares and I don't, but I thought maybe it might be a good tip.
So I looked into it, and saw the share price has decreased about 90%
So I look into the financials on SEDAR , trying to figure what's going on with the business here.
On the most recent financials from June 30, 2022 the cash on hand is 1.2 million, down from 12.2 million from December 31, 2021. The decrease matches the share price which is not a good sign but let's take a look deeper....
Current liabilities are 22 million, and total liabilities are 27 million with a shareholder deficit of 78 million-ouch!
Okay, things are looking that Rosy, but I looked over to the revenue side thinking maybe there could have some growing income to make up for this?
Six month revenues ended June 30 at 10 million, with an almost 50% decline from six months earlier of 14.5 million.
Okay, that may be the made up for it with expenses, on net profit -but unfortunately they lost $17 million over that time
.
Shares have been expanding, and under related party transaction it mentions that there's a lease agreement for rental property and the beneficiary is the controlling shareholder and CEO of the company and pretty hefty payments and options.
Took a look under contingent liabilities on page 16 of SEDAR, and it looks like there's a number of legal proceedings and potential liabilities
The working capital is 7.8 million, and I didn't get to the point of doing the cash burn but I can, but it's kind of looking overall a little scary.
What am I missing on my first overview?
Is there a great story behind this share price collapse and a company that is having declining revenues and potential liquidity issues?