PyroGenesis Inc T.PYR

GOOD INFORMATION FROM THE CONFERENCE CALL

[Melida]

Pascali went off script in relation to past due receivables.  He indicated that initial contract with Radian was amended to reflect a delayed payment on balance due.  He further indicated that Radian was thereby allowed to reallocate funds in a fashion that will benefit Pyro.  GAAP requires financial statements to deal with this issue on the basis of the original due date for the Radian payments to Pyro, which means the outstanding balance due has to show up as a past due receivable.  Pascali indicated that this receivable is collectible.  Plain and simple.  

I'm very comforted by this information.  In fact, I'm of the opinion that this whole issue is going to result in a bigger win for Pyro and not just the collection of the past due receivable.

[kjs4381]

I totally agree this will result in a bigger win for pyrogenesis.  I think it has been alluded to in previous releases. Because Peter's  loan to pyrogenesis mentioned no interest if paid within 45 days,  I'm hoping that whatever deal has been worked out, is announced in that time frame,  coupled with the 10 million payment. 

[Mostlyserious]

Overall, nothing new here.  Always been described that they were working on a renewed payment schedule benefiting the big client and looking into the future for the business relationship to evolve beyond this contract (the pot of gold at the end of this rainbow for the small guy). Accounting not reflecting contractual terms and not providing for the reality that contractual terms can change?

[Melida]

Mostlyserious,   What's your understanding then?  It was stated during the conference call that pursuant to GAAP (Generally Accepted Accounting Principles) the financials continue to be based on initial contract with Radian (not amended terms), therefore the receivable still shows on the financials as past due.  However, in essence, Pascali indicated it isn't past due

[Mostlyserious]

My understanding is that accounting standards allow for changes when there are changes to transactions. My understanding is that users of financial statements would be misinformed if they thought that an account receivable is due within a year when it is actually a long-term receivable due beyond the year which would then appear under non-current assets as opposed to current assets.  It would

[Melida]

Why don't you just access a recording of the conference call?  It's readily available.  Report back on exactly what was said regarding the receivable in question.   And you don't seem to understand GAAP.  

[StairwayTo]

Sorry Melida, but I understand GAAP and disagree partly with what the company is saying or not saying about it. . As stated in the financials and required by GAAP: . On the basis of the Company’s expected credit loss policy, the allowance was determined generally by applying a loss rate of 1% on balances 1-30 days past the invoice date, 2% for 31-60 days, 3% for 61-90 days and a minimum of 10

[StairwayTo]

Besides, it is a normal way for profitable company to accrue for bad debt at a reasonable %, it reduces their bottom line, therefore their taxes, and needs to be actually written off in the following year or CRA will disallow the previous year expense. Well that is not the case for PYR, they don’t pay taxes, and they won’t for a long time as they are losing money, big money every year.

[Melida]

Stairway,  I won't say your comments are incorrect but I will say they don't address the specific issue that was commented on in the conference call.  Listen to the conference call (I listened live and then went back to a recording to listen to the part that dealt with this particular issue).   Once you have listened to Pascali's specific comments on the Radian

[StairwayTo]

Take it as you whish, financials are there for investors to investigate, facts, some might prefer to hope for what a public company is saying and probably disregard the notion of disclaimer and the fine print of the ongoing concerns issued by that same public company. I have listened to Peter probably every video's and presentation for the past 4 years, and let me tell you, the financials

[StairwayTo]

So why accrue $9,000,000 in bad debt if they know they are getting paid?

[Mostlyserious]

Some of that may be in relation to other customers' accounts receivable. As for Radian, if there is no doubt that they will collect those accounts receivable, then those interested in the company looking at the financial statements will not have a true picture. I don't think that's the outcome that accounting standards try to achieve.

[Melida]

This is wrong.  I'll take the time to explain it to you.  GAAP requires that the initial repayment terms remain the terms that are applicable to the financial statements.  If a company could just amend the terms of repayment, the company could thereby cover up past due account.  This would result in an innaccurate accounting of what may have occured. Pyro followed GAAP, as

[Mostlyserious]

You are telling all of us that financial statements don't reflect the reality, not even close given that we are talking about a $10 million amount.  Someone completely new to PYR will look at the financial statements and based on just the examination of the financial statements would walk away with a completely, materially different impression than the reality. OK. We shall end this

[BCONTVentures]

Great points Melida, thanks for this.  I also enjoy having Peter go "off-script" during the conference call.  Definitely lots going on at PyroGenesis. From the Q1 NR: "The company's flagship technologies are now being assessed, tested, or in use across a much wider array of major heavy industry categories, in more primary jurisdictions globally, than even we once