Ok so we are going around in circles talking about the future again vs the reality. So you motivate me to do a deeper dive.
Lets go
First let me say I dont blame P3 or the company-all the facts are clearly in front of you (apart from the allegations of fraud by AMF-but innocent until proven guilty)
Its the promoters here that get me going.
Looking at sedar MRQ, at first glance, you might think that things are all Rosy because the company reports on the balance sheet
19,545,636
But notice, what are the current liabilities? 22,714,002
So your current liabilities exceed your current assets.
What does the company say? As at June 30, 2023, the Company has working capital deficiency of $3,168,366 ($1,650,709 as at December 31, 2022) including cash of $829,583 ($3,445,649 as at December 31, 2022). The working capital is net of an allowance for credit losses amounting to $6,303,840 ($5,023,283 as at December 31, 2022) as further described in Notes 6 and 7”
Well, you have to remember the cash that was stated back in July, and remember that since then they have been spending money.
Their math of business is that cash flow is the oxygen of a business.
You create it, borrow it, or finance it and dilute
The financing last time got halted by our friends at AMF, borrowing now at prime is 7%Plus and you know they ain’t getting that rate IMO, and creating money…..
Well, come on, what about the revenue that’s going to come in, what about the future?
Thats the carrot promoters keep putting on here-again and again thanks to BCONs reposting..
OK, so what about the revenue? Everybody keeps talking about the revenue that’s coming in. The problem is that they are spending money as mentioned above, and they are getting less than what they’re spending, and they’re also not collecting. So look at this:
IMO!
“As at June 30, 2023, the Company had sixteen contracts with total billings of $15,770,481 which were less than total costs incurred and had recognized cumulative revenue of $17,306,095 since those projects began. “
So the revenue is less than the costs of production.
Get that.
Now what about accounts receivable?
“As at June 30, 2023 the allowance for expected credit loss on trade accounts receivable is $5,967,840 ($4,693,283 as at December 31, 2022)”
Dont believe my math-what does the company say?
“The Company has incurred, in the last years, operating losses and negative cash flows from operations, and as a result, the Company has an accumulated deficit of $105,872,203 as at June 30, 2023”
So basically, they have to start performing they have to produce, distribute and critically be collecting, or what’s going to happen??
“ In the absence of this, the Company is dependent upon raising additional funds to finance operations within and beyond the next twelve months. The Company has been successful in securing financing in the past and has relied upon external financing to fund its operations, primarily through the issuance of equity, debt and convertible debentures. The Company completed a private placement in October 2022 for an amount of $1,318,980 and also completed another private placement in March 2023 for net proceeds $4,960,483 (Note 13). In addition, in July 2023, the Company also completed a brokered private placement of convertible debenture units for gross proceeds of $3,030,000 (Note 23). While the Company has been successful in securing financing, raising additional funds is dependent on a number of factors, some of which are outside the Company’s control, and therefore there is no assurance that it will be able to do so in the future or that these sources will be available to the Company or that they will be available on terms which are acceptable to the Company. These conditions indicate the existence of a material uncertainty that may cast significant doubt about the Company’s ability to continue operating as a going concern. The condensed consolidated financial statements have been prepared on a going concern basis and do not include any adjustments to the amounts and to classifications of the assets and liabilities that might be necessary should the Company be unable to achieve its plan and continue in business. If the going concern assumption were not appropriate, adjustments, which could be material, would be necessary to the carrying value of assets and liabilities, the reported expenses, and the classification of items on the condensed consolidated statement of financial position. “
But hey, this is all my opinion I’m just an independent investor, who likes to do a deep dive. Don’t trust what I say for sure, and absolutely don’t trust me when you’re here promoters telling you to buy. Do yer own due diligence, caveat emptor
I am an idiot as I have said many time- a babbling fool. Just turns out I have been right.
And where is science first/develop bc and the grandfather who invested his child’s RESP money and that other caustic grandfather Yanje ???
These folks promoted these stocks and now its radio silence
It bears repeatiung
First let me say I dont blame P3 or the company-all the facts are clearly in front of you (apart from the allegations of fraud by AMF-but innocent until proven guilty)
Its the promoters here that get me going. They stop-and so will I