FormerXBC Inc XEBEQ

Very few people study balance sheets

[tamaracktop]

Has everyone noticed that Xebec's total assets have grown from $5.1 million in 2016 to $444 million in 2020? ....That's an 87-fold increase in 4 years. Just the facts folks. Just the facts.

[Gann999]

while impressive that fact doesn't do much for investors today unless you expect their assets to be 38.6 billion dollars in 2025. I certainly don't.

[tamaracktop]

Frankly, I don't understand your point. Revenues have grown from $9.5 million to $57 million over the sane 4-year period, and will be over $110 million this year. These are irrefutable indicators of exponential growth. The stock price doesn't reflect the company. The stock price is dictated my the whims and emotions of the company's small fraction of shareholders who are active in the

[Gann999]

Yes agreed and I think xebec is a great company at the right time in the right sector that has had some missteps which has caused the pendulum to swing to extreme pessimistic views on the company which I believe are highly unjustified. Just trying to remain optimistic but realistic at the same time of my expectations. I don't see assets repeating 87 fold in the next 4 years was my point.

[Gann999]

You are absolutely correct though from almost bankrupt to 400 million in assets and moving forward becoming a significant player in the rng and hydrogen markets is fantastic.

[Zugnutz]

Half of the asset balance is Goodwill. Goodwill is not cash or a physical asset.  The majority of Goodwill (67% as of last quarter) is attributed to the purchase of HyGear. This subsidiary does the majority of hydrogen and nitrogen business and I'm hoping the premium that Xebec paid will payoff big time.

[tamaracktop]

Look at the goodwill component of the others' balance sheets. The others that trade at 3.7 times book value on average. You'll get my point.

[Gann999]

At the end of the day goodwill though not tangible still has a value even in the case of bankruptcy so am not super concerned about it. Just wanted to get some other opinions about a large amount of xebec assets being goodwill and the risk of goodwill impairment should the aquired companies not perform as well as expected. I still have faith in xebec and believe that being valued at 400 million

[Ciao]

XBC bought HyGear for approx. $160M or just under 9X 2019 sales and that was a steal for a hydrogen company. Goodwill on XBC's books currently has HyGear at $142M.  They bought a hydrogen company at a great price with proprietary tech which now accounts for the majority of goodwill on their books. If XBC was back at $10 ($1.55B market cap), we wouldn't be talking about goodwill.

[Gann999]

Always good to have discussions about this stuff to have a solid understanding of the financials and what it all means to everyone.

[Gann999]

Is goodwill not more about how much over book value was paid for the aquired company rather than any 1 years sales? What was hygears book value at the time xebec purchased it is this even known? Not asking to cast a shadow on the purchase just to become more informed about the deal.

[Ciao]

You're talking in circles now.  Book value includes goodwill. You likely mean tangible assets and how much more XBC paid beyond that. I don't know the answer.   Goodwill will hang around unless the value of the hydrogen tech becomes obsolete over time and HyGear cannot generate sales from it. If the forumula for Coke was found to be carcinogenic, there will be a major

[Gann999]

Am not trying to talk in circles forgive me for not wording things correctly. Every company has a book value was just curious what hygears book value was prior to aquisition as a separate company.