Already the possibility of being completely debt-free with net cash First read my Q3 reviw here:
Nova Leap Health
- A few points and figures from the latest Q3 report that show me that NLH are on the right track
https://stockhouse.com/companies/bullboard?symbol=v.nlh&postid=35114729
As NLH themselves stated, the plan is to: ”While we made noted improvements to the business described above, we also took the opportunity to extinguish approximately half of the Company’s outstanding bank debt while simultaneously increasing the Company’s cash position. Once the remaining ERC receivable is collected and applied to the outstanding debt, the demand loan balance will fall below $900K. By the end of 2023, we are expecting the outstanding balance on existing demand loans to be approximately $265,000.”
But if you look at the numbers and assume that they have received the last outstanding ERC amount, which they should have received based on previous payment patterns, then NLH could already be completely debt free with net cash.
Cash Cash and cash equivalents
Q3: $2,207,432
Employee Retention Credit (“ERC”)
”As of September 30, 2022, an ERC amount of $659,495 is outstanding …”
Loans Demand loans
Q3: $1,530,063
Non-revolving demand loans
Q3: $640,000
Total: $2,866,927
-
$2,170,063
+ $696,864
And still full access to the unutilized revolving credit facility of $1,094,331 (CAD$1,500,000).
They estimate revenues of $28-30 million with current home service companies annually. The goal in the future is 10% EBITDA when they will continue to grow.
Market cap today?
$16 m
In a business segment that will grow enormously organically in just the next few years:
”U.S Home Health Care is projected to grow from $94.17 billion in 2022 to $153.19 billion by 2029”
https://www.fortunebusinessinsights.com/u-s-home-healthcare-services-market-105568