An interesting post by falon on the q1 Saturday, 08/15/20 12:06:24 PM
The 10Q was underwhelming however it had some tidbits especially hiring a consultant:
On July 8, 2020, the Company entered into a consulting agreement. Pursuant to the agreement the consultant will provide business development and introductory services for a period of five years in consideration for the issuance of 1,000,000 common shares of the Company and a 5% commission, paid in shares, for any investments brokered.
I’m sure many of us were expecting more revenue based on what came out of the press releases. The fact of the matter is we had no idea of the per gallon price of HOCL for the large orders.
PCTLis pleased to announce they have obtained a large pre-paid order from an existing sub-registrant in the Midwestern United States for 10,000 gallons of a specific fluid solution, with regular, recurring orders expected to follow.
https://www.para-con.com/images/docs/PCTL03-18-20.pdf
Little River, South Carolina — (March 25, 2020) PCT LTD (OTC Pink: PCTL) ("PCTL"
is continuing to expand business operations at a rapid rate while experiencing a dramatic increase in inquiries and orders from new and existing clients. Following up on an earlier release from March 18th; a second 10,000-gallon fluid order has been shipped to an existing customer in the Midwest. Recurring orders to this sub-registrant are expected to follow in the coming weeks. https://www.para-con.com/images/docs/PCTL03-25-20.pdf
Two orders of 10,000 gallons of HOCL in seven days set the stage for explosive sales. How many more regular, recurring orders shipped out will be revealed in the 2nd quarter 10Q. There was a lapse where there was more demand for supply that PCTL couldn’t provide until they increased their capacity.
Updating an earlier release (March 25th), the South Carolina facility is now capable of producing up to 10,000 gallons of fluids per day. A marked increase over earlier capabilities. The company is now better positioned to meet the growing demand for its Hypochlorous Acid-based disinfecting fluids. Due in part to the ongoing coronavirus pandemic, the company has seen an exponential increase in sales and inquiries from current and prospective customers. Late last month the company shifted its short-term focus towards fluid production and sales to meet increasing demand. https://www.para-con.com/images/docs/PCTL04-07-20.pdf
PCT LTD Discusses Its Rapid Growth and Expansion Plans with The Stock Day Podcast in April 2020. The conversation then turned to dilution and outstanding shares. Grieco noted that dilution occurred prior to January 2020, but shared that any shares that are currently being issued are meant for growth. “We are in a position as a company on a cash flow basis to cover the burn-rate,” said Grieco. “So, we finally have free available cash flow,” he added. “We have to expand very rapidly. We see a need, starting in July, to start delivering at least 25 systems a month,” said Grieco. https://www.para-con.com/images/docs/PCTL04-21-20.pdf
Cash flow is the net amount of cash and cash equivalents being transferred into and out of a company. Positive cash flow indicates that a company's liquid assets are increasing, enabling it to settle debts, reinvest in its business, return money to shareholders and pay expenses. Cash flow is reported on the cash flow statement, which contains three sections detailing activities. Those three sections are cash flow from operating activities, investing activities and financing activities.
Free cash flow (FCF) is the cash a company produces through its operations after subtracting any outlays of cash for investment in fixed assets like property, plant, and equipment. In other words, free cash flow or FCF is the cash left over after a company has paid its operating expenses and capital expenditures.
So there probably was very good sales of HOCL from the March 28, 2020 PR to the April 21, 2020 PR when Gary made his famous announcement:
Quote:“We are in a position as a company on a cash flow basis to cover the burn-rate,” said Grieco. “So, we finally have free available cash flow,” he added. “We have to expand very rapidly. We see a need, starting in July, to start delivering at least 25 systems a month,” said Grieco.
The third week into the 2nd quarter is when cash was really flowing.
How much?
Based on Gary’s statement of the ability to cover the burn-rate and the total 1st quarter expenses being $780,657 and dividing that by three it should be at least $162,000 per month . The majority of that figure probably comes from increased HOCL sales. Moving forward cash flow should move up with the increase of distributors and sales/leases of the flagship product, the Annihilyzer.
While the gift of HOCL provided the company some financial relief and it could not have come at a better time, it has enabled PCTL to now move on with sales/leases of their flagship product, the Annihilyzer to multiple locations around the United States.
I believe this trend will continue and for every system delivered it will create more demand as word gets out. This is evident as PCTL keeps growing month after month in New York City.
The biggest unknown right now is what is going on in the UK .
There will be some updates hopefully soon.
PCTL has a whole host of systems to meet different needs:
Production: Hydrolyte® is generated with the company’s proprietary equipment. The production technology for Hydrolyte® generates a product with predetermined PPM and pH properties, i.e., the equipment can be calibrated to deliver any desired PPM level; and, we believe it is superior to any other known production process or equipment available in the market today. The scalable Hydrolyte® generation systems technology largely will be housed in portable and mobile units, which can be readily moved within a building or from site to site, although more permanent installations, probably employing larger generation systems, will be made in situations where such installation is appropriate or required. The Company’s models of Hydrolyte® generator equipment is classified, dependent upon configuration and volume of output:
Annihilyzer Infection Control System – Hospital/Healthcare
Annihilyzer Infection Control System -- Rack
Annihilyzer Hospital 360 SMART Spray Cart
Hydrolyte Generator – Large and Medium Volume
SurvivaLyte Manual Generator – Small Volume
School/Hospitality Industry and General Business 360 SMART Spray Cart
FACTS not fiction
