Quarterhill Inc T.QTRH

Cannery in the coal mine

[Jimmycash]

The canery in the coal mine is the 50M of current debt as in " pay in the next 12 months" thats on their books. That is owed before any unexpected or one time expenses like another law suit or more severance pay are added.

So 67M in bank as of Dec 31, 2022, 50M owed this year plus portion of long term debt 

Lets see.....

ITS lost 27M last year and is not expected to totally turn around before mid 2024.... so if Wilan does not have another Apple like year and say....breaks even...or like most years is in the red between windfalls

COMPANY IS IN A WORLD OF HURT...WHAT A SHAME!!!

cut the dividend? sell shares? going to cause pain. long term debt non- compliance...ouch!!!

Sell Wilan?? Thats the only thing holding them up right now...how long to burn through another 100M from the sale and no more cash cow.

Seems like either ETC is not the profitable company we thought we were getting for our 150M or Bret got too many losing contracts that are sinking the ship.

Time to bail

 

[Homework]

Jimmy..... jimmy..............fake facts Jimmy.......they have net debt of - 5 million. No 50 million due in 12 months.......... Jimmy..... Jimmy........lol

[Capharnaum]

Not only was current debt on the balance sheet $29M, but they stated in the conference call that the lender waived the covenant that made it "current", so most of it should revert back to long term next quarter. The rest is working capital, which consists of assets of $78M (AR, Unbilled, Inventories) vs liabilities of $56M (AP, Deferred revenue). Time to hone up your balance sheet

[Jimmycash]

Read the Annual financial statement..all 54 pages Note 24 page 51 of financial statment..... financial risk...liquidity risk Due less than year 47M acc payable 29.3M Long term debt 3M  Leases These are payments due in 2023. You are correct current portion of "long term debt" is 29M but was pushed out agian to future leaving 50M due this year plus repayment portion of said long

[Jimmycash]

Correction I should have stated 50M in liabilities due in 12 months rather than debt either way 50M is owed in 2023 and we need a big court case or ETC profit good luck with that!

[cabbieJBJ]

Jimmy, get a fire extinguisher and relisten to the call or read the transcript.  Capharnaum is right in his balance sheet read.

[Capharnaum]

There is a big difference between liquidity needs for working capital requirements and debt. Both are indeed short term liabilities, but they have a different effect on cashflows. Working capital is required to close the gap between the expenses carried out that will be paid (Account payables) and the services done that need to be paid. Additionnaly, for companies in sectors like ITS, you will