My overall analysis of the quarterly financials.
Management elected to not book the 500k in sales to the Canadians which is a good accounting move but reflects poorly on the current financial statement.
Those revenues should be booked only when the order has been delivered.
Accts Rec 301k
Differed Revenue 650k
Revenue Generated 246k
Inventory is at 879k
Much, if not all this revenue plus the increasing revenues now being generated from the snowflake can should put this quarters revenue over 2 million in sales on the low side and I will explain below.
I also like some of the restructuring and also now understand why the Audit is delayed and that is due to that restructuring and how that needs to be classified.
Another positive note is that they did retire 197k in notes during this same quarter.
The actual cash generated on this financial statement is far greater than the statement allows due to the accounting method used.
My overall opinion on this is management has done a pretty good job for only its second quarter of sales (ending June 30th)
When the first quarter of actual sales (3rd quarter of the company fiscal) came in over 600k that was very good. This quarters actual sales while showing lower does not accurately reflect what was accomplished.
879k of inventory goes a long way to knock down the liabilities.
Moving on to the liabilities lets review those numbers.
Accounts Payable $28,347 Pretty low number here
Convertibile Notes Payable $1,240,759 Expected
Deferred Revenue $650,000 Expected
Other Current Liabilities $174,767 Unknown so neutral
Total Current Liabilities $2,093,873 Expected
Total Liabilities $2,093,873
Once the Canadian order is filled the 650k comes off and reduces the 2m to 1.35m.
If the burn rate stays steady at 379k and the 650k goes on the income side the company will be up in just that one transaction by 271k. Add to that the receivables of 301k and next quarter is at a positive of 572k without any new sales.
Add the current inventory of 879k and we will have a profit of 1.451m.
Overall I am very positive on this quarters results without adding new larger clients that we are likely to get with the snowflake can.
If we start getting news of landing larger clients during this current quarter and manufacturing increases before years end this could be the best stock pick of decades.
Having said that, it is a young company getting its foundation for a great long term run.
Management elected to not book the 500k in sales to the Canadians which is a good accounting move but reflects poorly on the current financial statement.
Those revenues should be booked only when the order has been delivered.
Accts Rec 301k
Differed Revenue 650k
Revenue Generated 246k
Inventory is at 879k
Much, if not all this revenue plus the increasing revenues now being generated from the snowflake can should put this quarters revenue over 2 million in sales on the low side and I will explain below.
I also like some of the restructuring and also now understand why the Audit is delayed and that is due to that restructuring and how that needs to be classified.
Another positive note is that they did retire 197k in notes during this same quarter.
The actual cash generated on this financial statement is far greater than the statement allows due to the accounting method used.
My overall opinion on this is management has done a pretty good job for only its second quarter of sales (ending June 30th)
When the first quarter of actual sales (3rd quarter of the company fiscal) came in over 600k that was very good. This quarters actual sales while showing lower does not accurately reflect what was accomplished.
879k of inventory goes a long way to knock down the liabilities.
Moving on to the liabilities lets review those numbers.
Accounts Payable $28,347 Pretty low number here
Convertibile Notes Payable $1,240,759 Expected
Deferred Revenue $650,000 Expected
Other Current Liabilities $174,767 Unknown so neutral
Total Current Liabilities $2,093,873 Expected
Total Liabilities $2,093,873
Once the Canadian order is filled the 650k comes off and reduces the 2m to 1.35m.
If the burn rate stays steady at 379k and the 650k goes on the income side the company will be up in just that one transaction by 271k. Add to that the receivables of 301k and next quarter is at a positive of 572k without any new sales.
Add the current inventory of 879k and we will have a profit of 1.451m.
Overall I am very positive on this quarters results without adding new larger clients that we are likely to get with the snowflake can.
If we start getting news of landing larger clients during this current quarter and manufacturing increases before years end this could be the best stock pick of decades.
Having said that, it is a young company getting its foundation for a great long term run.
