Sphere 3D Corp. (ANY)

[Hugodrax]

Wow, what a disaster IMHO.

Not only ins revenue headed back into the toilet but:

$2.7 million in stock comp in the QUARTER lol

Overall gross margin is 28%. That INCLUDES the high margin (~50%) service business. That means when the MD&A eventually comes out the product gross margin should be in the toilet IMHO.

The only "good" news is they are a bit more liquid than I expected with $5M as at Sep 30 (perhaps down to $2.5M by now) so maybe they can skate for the next 6 weeks or so.

However their current liabilities went from $23.6M last Q to $25.4M while the business shrunk - my guess is they are stretching payables out which is why the cash balance is a little higher than I expected.


"The company has signed a term sheet....expected to expand its virtualization biz by more than $6M annually starting in early 2017" LOL that is absolutely classic.

The more granular "Corporate Update" is on a $25M "credit fund" financing. LMAO. If they do that $18M will go out the door to Opus in all probability and $2.5M perhaps back to Cyrus so even if they can pull this off how long do they get to live? All while diluting everyone with stock comp and facing a delisting.

Should be a fun CC.