Wipeout!!!!! i know everyone knows of this.....but was nice reading again this morning.....while getting ready for THE IDES OF MARCH......
Jay Cardwell: Okay, great. Hi Joe. My name is Jay Cardwell. I'm with his CFO Squad. Iwork as we as our financial reporting services to sort of coordinate, track, andintegrate all of the various acquisitions and reporting for the Qs and the Ks.One of the elements that we have been looking and working on are these listing requirements for an up-lift for NASDAQ. Obviously, one of those
elements of qualifications is to get to a positive shareholders' equity. If one
looks back at this time last year, January 31, at the end of Q2, the
shareholders' equity was negative 62 million.
As we progressed to the end of the fiscal year at 7/31, we actually worked off
about $18 million of that. It landed at negative, about $43 million. That
continued to improve through the first quarter where we worked off, also
another $18 million of that negative equity.
We landed at a negative $25 million. With the restructuring in the
remembering of the complex acquisition of HDS in the beginning of '17, that
had incorporated. Only, we took 51% of that company.
But, in this last quarter, we exercised their options to take over the remaining
49%. As a result of that exercise of that option, there was a substantial
amount of debt on HDS, which contributed its capital, as well as the issuance
of the warrants, and the liabilities attached to that.
Without going into all of the minutiae of that, that brought us down. Even
though we haven't issued our quarterly, and we're working on our Q2
Generex_IR_Call_2262019
Page 28 of 35
financial reporting now, and the various other filings related to the recent
acquisitions.
That, plus the acquisition, and structuring of the Veneto acquisition,
Regentys, and Olaregen, actually should cross and be almost $2 million
positive at the end of Q2. I will qualify that because I'm still waiting for final
valuations and reviews by auditors and others to make sure that any
derivative elements of any debts in any of these acquisitions would not have a
negative impact.
But looking at our profit, loss of these entities of corporate, and the removal
of debt, and certain other derivative liabilities, we should be positive this
moment. The threshold that everyone on the up-lift listing requirements is to
have liquidity and be positive for equity of about $5 million.
Right now, we might land with almost two million positive at the moment.
Obviously, as you go forward you have got to put into effect certain future
losses, but also future acquisition. As Pantheon and Medisource is acquired
for stock, that will add to our equity base as well, and offset any additional
losses that we might expect in Q2.
Additional acquisitions that are planned would also almost overwhelmingly
push us to exceed the capital requirements for an up-lifting; and, provide the
liquidity working capital necessary to meet those other additional listing
requirements.
Jay Cardwell: Okay, great. Hi Joe. My name is Jay Cardwell. I'm with his CFO Squad. Iwork as we as our financial reporting services to sort of coordinate, track, andintegrate all of the various acquisitions and reporting for the Qs and the Ks.One of the elements that we have been looking and working on are these listing requirements for an up-lift for NASDAQ. Obviously, one of those
elements of qualifications is to get to a positive shareholders' equity. If one
looks back at this time last year, January 31, at the end of Q2, the
shareholders' equity was negative 62 million.
As we progressed to the end of the fiscal year at 7/31, we actually worked off
about $18 million of that. It landed at negative, about $43 million. That
continued to improve through the first quarter where we worked off, also
another $18 million of that negative equity.
We landed at a negative $25 million. With the restructuring in the
remembering of the complex acquisition of HDS in the beginning of '17, that
had incorporated. Only, we took 51% of that company.
But, in this last quarter, we exercised their options to take over the remaining
49%. As a result of that exercise of that option, there was a substantial
amount of debt on HDS, which contributed its capital, as well as the issuance
of the warrants, and the liabilities attached to that.
Without going into all of the minutiae of that, that brought us down. Even
though we haven't issued our quarterly, and we're working on our Q2
Generex_IR_Call_2262019
Page 28 of 35
financial reporting now, and the various other filings related to the recent
acquisitions.
That, plus the acquisition, and structuring of the Veneto acquisition,
Regentys, and Olaregen, actually should cross and be almost $2 million
positive at the end of Q2. I will qualify that because I'm still waiting for final
valuations and reviews by auditors and others to make sure that any
derivative elements of any debts in any of these acquisitions would not have a
negative impact.
But looking at our profit, loss of these entities of corporate, and the removal
of debt, and certain other derivative liabilities, we should be positive this
moment. The threshold that everyone on the up-lift listing requirements is to
have liquidity and be positive for equity of about $5 million.
Right now, we might land with almost two million positive at the moment.
Obviously, as you go forward you have got to put into effect certain future
losses, but also future acquisition. As Pantheon and Medisource is acquired
for stock, that will add to our equity base as well, and offset any additional
losses that we might expect in Q2.
Additional acquisitions that are planned would also almost overwhelmingly
push us to exceed the capital requirements for an up-lifting; and, provide the
liquidity working capital necessary to meet those other additional listing
requirements.
