Xtract One Technologies Inc. T.XTRA

Balance sheet and need for cash

[FrozenInOntario]

Kid raised an excellent point HUGE market potential  RIGHT NOW. Maybe too huge for their balance sheet?
So 3 questions : 1) What do they need in term of cash to fund this ?   2) How much cash do they have on the balance sheet ? 3) How will they obtain this cash.
1) Needs.
  Page 17 of their current MD&A gives an idea : still have to spend 7.8 M out of 8.7M from their last raise.  This was then, they burn 8.1 M in the last year.  If One proves a big hit, pick an additionnal number.
2) Current cash
Working capital was 9.9 M, 8.6 M in cash.  So ok to fund what they were anticipating last raise, might need more.
3) How
Another raise to fund growth ?  Always a risk, however, they do have $6.6 M coming their way if the .75 warrants expiring in march 25 get exercised.   At current stock price of .74,  conversion is in the bag if they book great results and it will be enough to fund their growth.   Warrants conversion is more than enough to fund growth for the next few years. 

So, kid, I believe they have the balance sheet to fund their growth.   Should another opportunity presents itself like Peter mentionned, you never know.  Or if we get a black swan and warrants do not get converted.  But basic scenario is covered. 
GLTA

[Revenant]

Another offering this soon would be bad optics. One of Xtract's biggest drags is the amount of total shares outstanding. 218 million is high.  Further dilution will definitely affect our attractiveness to institutional investors.  

[FrozenInOntario]

Hey Rev, Do not really care about the bad optics, it all depends on the use of the funds.   This being said, as mentionned, the warrants should cover their cash needs.  If they can't be exercised,  I would assume the story did not pan out as I taught and then, I will be out.   Thinking about it , we have 61 M warrants O/S and now 15 M options.  We are

[kidl2]

FrozenInOntario: I agree with your take on the balance sheet. Projected growth can likely be financed internally. My comment about the strength of the balance sheet was geared to substantially greater growth than projected which would leave XTRA with two options:   1) Issuance of equity which if done at the right time and for the right reason I personally and contrary to many shareholders

[FrozenInOntario]

Hey Kid, What would you qualify as substantial greater growth and where do you see it ? Quite long on this and added more on friday on the Evolv debacle.  Cheers, 

[kidl2]

FIO: Substantial growth to me would be a doubling of sales YOY.   Where will / should growth come from? Maybe the better question would be: Where should growth NOT come from? The answer is is an easy one imho: From public places like government buildings, airports, subways etc simply because these places are a magnet for “special interest groups” who live off privacy and other often

[TheGesharoo]

Agree with that mostly. To function very well in a subway environment we need to be both bidirectional and almost perfect with heavy clutter (not there yet).   Old metal detectors are heavily installed in innumerous public safety buildings (north american wide).... think jails, courthouses, etc etc.  One way traffic in.  There's no reason we can't take those contracts imo.

[Revenant]

Agree on subways and airports. Not on government buildings, tho. Those are tailor made for one or both gateways.   

[TheGesharoo]

Ok... Yet again I am guilty of not having my reading glasses on! I reread your post and now fully agree.  I was confused by your response so I reread - with my specs.   Same page.   I''m soooo curious if any clients who migrate from evolve to us are permitted to PR the change in service.  I would expect many evolve clients are looking to dispatch them due to ethical

[Baxbax]

Totally. And further what are the contract terms and if customers can leave those. Multiyear contracts but then with saas (or who know as E's finances cant be trusted). What I have been thinking is why customers would lock them in with any vendor for 3 or 4 years. Operationally shouldnt be too much of on hazzle with most of customers. Looking forward on visuals at least of shifting customers..