Quipt Home Medical Corp T.QIPT

Cash Bur

[KarlGibbons]

At Q1/2024, QIPT had $18.3 million of cash.  They now have $14.4.  That's a ~$4 million decline by my math.  A/R have jumped approx $7 million due to change healthcare presumably.  However, payables have also jumped $7 million from Q1.  That means, as those receivables are collected, it will just pay down payables, and won't generate cash.

Additionally, the company has drawn $2.9 million on the revolver since Q2.

That sounds like ~$7 million of cash burn over the last 2 quarters.

[lscfa]

Buying new long-lived equipment is not a cash burn, it's an investment. We experienced higher CapEx for the three months period ending June 30, 2024, due to the purchase of new ventilators to replace the old trilogy model in our fleet.

[KarlGibbons]

Well that's certainly a factor. But there is too much tied up in working capital at the moment. current assets (exc. cash) are at $60 million now vs....$47-48 million normal levels. that's a $12-13 million increase and only partially offset by a $5-6 million increase in payables and accrueds. so its a $6-7 million investment in working capital that is holding down cash right now.