FormerXBC Inc XEBEQ

3 things in Greenlane's release that make Xebec look better

[tamaracktop]

"Sales pipeline3 valued at over $850 million as at September 30, 2021."

Why does Greenlane include sales pipeline in their quarterly highlights?
Xebec doesn't 

Gross profit of $3.1 million, gross margin (gross profit excluding amortization) of $3.4 million (25% of revenue).

Why does Greenlane exclude amortization when announcing their margins
Xebec doesn't

and finally:

Management evaluates the Company's performance using a variety of measures, including "Adjusted EBITDA", "gross margin" (gross profit excluding amortization), "sales pipeline" and "sales order backlog". The non-IFRS measures should not be considered as an alternative to or more meaningful than revenue or net loss. These measures do not have a standardized meaning prescribed by IFRS and therefore they may not be comparable to similarly titled measures presented by other publicly traded companies and should not be construed as an alternative to other financial measures determined in accordance with IFRS. The Company believes these non-GAAP financial measures provide useful information to both management and investors in measuring the financial performance and financial condition of the Company. Management uses these and other non-IFRS financial measures to exclude the impact of certain expenses and income that must be recognized under IFRS when analyzing consolidated underlying operating performance, as the excluded items are not necessarily reflective of the Company's underlying operating  performance 

This item appears in the notes attached to the financials titled
 NON-IFRS FINANCIAL MEASURES 

You don't see that attached to Xebec's numbers.

[Ciao]

What about these shenanagins...capacity issues at GRN / high credit risk customers? Updated Timing of Previously Announced Contract in 2020: In February 2020, the Company announced a US$5.3 million ($7.0 million at Canadian dollar value on announcement) biogas upgrading contract with Renewable Natural Gas Company of Ligonier, Pennsylvania (“RNGC”). Under the contract the Company was to supply

[kulewater]

A litle bit suspect there. Looks like they got out over there skis a bit too much. the contract with RNGC was amended to reduce the scope of supply from three systems to one, because two of the systems were sold in the quarter to another customer for US$3.0 million Sounds like they werent too sure the customer would be able to pay for the 3 systems so they sold 2 to someone else. The

[Ciao]

If you look at the lack of growth in service and support, that is likely an indication of customer attrition given system sales have gone up 3 fold and service and support was stagnant

[catchascatchcan]

In fairness, many companies will opt to farm out maintenance to a potentially cheaper provider.  Manufacting and maintenance are two seperate animals.  While both GRN and XBC would aspir to lock in long term maintenance contracts, it's not uncommon for industry to shop the service.  While few people might manufacture a system, it's very common that many people can maintain

[Gann999]

Sure but will that result in voiding any warranty?

[Gann999]

Also don't forget their service team can service competitors equipment as well so they are competitive on all fronts

[catchascatchcan]

Often times yes, depending on Terms and Conditions.  But from an operations perspective, there is much greater value in putting equipment back in operation ASAP, and at cost, rather than leaving it off-line while warranty work is scheduled.  It's a simple cost benefit analysis, and it's extremely rare that warranty work is the route taken.  Barring massive mechanical failure

[Ciao]

GRN has limited support their products as they do not have a broad service network like XBC. This was mentioned in the Radius Research interview GRN had a few months ago. They were "looking at doing something".

[Gann999]

Maybe grn will hire xbc to service all their equipment.

[kulewater]

Sounds like an opportunty for XBC to establish a few relationship with GRN customers and then convert them. Althought I have a feeling there is already some buyers remorse floating around. Big day tomorrow.. Progress not Perfection.  In Kurt we trust.

[tamaracktop]

take the time to read that carefully. Very nearly 2 years after a deal was signed for 3 units for  $7 million, the company sold 2 units for $3.8 million, and there is no knowing whats going on with the third. This contract that was reported as signed a year and ten months ago. They only have to get $3.2 million for their last unit to have not committed a managerial stumble. I've never