""Now we are at $100 million market cap or less than gross revenue"""
At $3.15 the market cap is around $109M. But don't forget there are about 5M shares and warrants outstanding.
On top of this the company has $25M in debt owed to Cyrus, most of it convertible at $7.50 to $8.50.
Plus another $4.9M on its credit facility (non-Cyrus).
Plus they said they drew down on another $5M during Q1 from Cyrus.
I'd also adjust for the negative working capital (-$5M as of Dec 31, likely much larger now).
I love how nobody gives a hoot about the balance sheet. Software companies can get by with minimal working capital if they are breakeven. Hardware companies cannot get by with negative working capital.
Homework assignment:
1) Think about whether or not ANY needs to raise capital near-term
2) Review page F-16 of the 40-F. I'll save you the trouble:
"""The Global Debenture contains customary covenants, including covenants that limit or restrict the Company's ability to incur liens, incur indebtedness, or make certain restricted payments."""
IMHO that effectively means that unless Cyrus puts in more cash, they won't allow additional debt.
The more interesting one is the credit facility which was $4.9M as at December:
"The credit facility requires the Company to comply with a liquidity coverage ratio and contains...."
I am doing some digging to see if I can learn more about the liquidity coverage ratio.
Fascinating that people are so sanguine about the company's financial position.
IMHO unless Cyrus puts in more debt, the most realistic capital raising option is straight equity, and I wouldn't be surprised if they needed t to sweeten it - e.g. max discount to trading price and perhaps warrant kickers.
