Thoughts/discussion points as I browse the Q: 1
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Posted On: 12/21/2020 5:50:54 PM
Thoughts/discussion points as I browse the Q:
1) The Q came out well before close, and there was no dumping (volume or price) after that. So maybe my previous comment on the $6MM has a nugget of truth. I guess we will know more tomorrow.
2) Liabilities went thru the roof this Q. Looks like the bulk of the increase was due to an accounting rule change on the convertible notes. In my interpretation (not an accountant, but I play one on TV), over $15MM in liabilities was created on paper to handle this accounting change, but it did not add anything to what the company actually owes currently.
The notes/warrants were reclassified as derivatives, so they have to be accounted for differently than they were originally.
If you want to check it out, see Note 7 - Notes Payable and Note 8 – Derivative Liability. Feel free to let me know if you feel differently about this, but I feel like there is no more exposure here than there was last Q.
3) There were no real Revenues. I didn't expect anything here. However, per my conversation w Sanjay on the last call, we were expecting to see some Revs from the NuGenHealth CCM project by some time in November. If we give a little cushion there, I still expect to see SOMETHING here by next Q. Hopefully by that time, there will have been a release of some sort of timeline/revenue projection for that business unit. If this is a real, up-and-running project, we deserve some meat on the information bone here from Joe.
1) The Q came out well before close, and there was no dumping (volume or price) after that. So maybe my previous comment on the $6MM has a nugget of truth. I guess we will know more tomorrow.
2) Liabilities went thru the roof this Q. Looks like the bulk of the increase was due to an accounting rule change on the convertible notes. In my interpretation (not an accountant, but I play one on TV), over $15MM in liabilities was created on paper to handle this accounting change, but it did not add anything to what the company actually owes currently.
The notes/warrants were reclassified as derivatives, so they have to be accounted for differently than they were originally.
If you want to check it out, see Note 7 - Notes Payable and Note 8 – Derivative Liability. Feel free to let me know if you feel differently about this, but I feel like there is no more exposure here than there was last Q.
3) There were no real Revenues. I didn't expect anything here. However, per my conversation w Sanjay on the last call, we were expecting to see some Revs from the NuGenHealth CCM project by some time in November. If we give a little cushion there, I still expect to see SOMETHING here by next Q. Hopefully by that time, there will have been a release of some sort of timeline/revenue projection for that business unit. If this is a real, up-and-running project, we deserve some meat on the information bone here from Joe.
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