Sphere 3D Corp (ANY)

[Hugodrax]

Actually, Chairman, you are wrong. What you should understand is that just because there is one example that has details, it doesn't mean that other examples are wrong. It is not prescriptive. The rules just say the "material factors" should be "reasonable, supportable, entity-specific, tied to FLI and disclosed".

They talk about an example of a retailer using same-store sales growth AS AN EXAMPLE, not by prescription.

A very relevent example the regulator gives is a company that states: "The entity expects EBITDA for segment #1 to reach $125 million by 2014."

They give perfectly acceptable disclosure of the material factors re the above as:

"Retail business conditions are assumed to be within normal parameters with respect to prices, margins, product availability, and supplier agreements for our major products.

ABC’s ability to identify suitable candidates for acquisitions and negotiate acceptable terms . ABC’s ability to integrate acquisitions, including its ability to achieve efficiencies as planned.

ABC’s ability to implement its standards, controls, procedures and policies at the acquired business to realize the expected synergies."


They give even more room regarding Key Performance Indicators by noting "KPIs can be both qualitative and quantitative."


Anyone with an ounce of common sense knows that the company could have easily done this.IMHO.



Also IMHO, it seems patently obvious that they DID NOT WANT the $160M run rate "goal" to BE deemed FLI/guidance. The last CC made this obvious when Cabel asked them flat out if it is guidance and they bobbed and weaved.

Perhaps this part of NI-51-102 is the reason: "FLI can only be disclosed if there is a reasonable basis for the information"

The fact that the regulators seem to have called them out to provide at least SOME basis for the $160M means, IMHO and in my speculation, that they are using it as a convenient excuse to back off of it.


But let's get to the real point Chairman - a yes or no answer will suffice:

Do you think they will hit $40M in revenue in Q4? I'll even give you the Imation revenue in there. Yes or No?