I took a look at the q4-17 bal sheet vs q3-17. Disclaimer....Im sitting in an airport doing this on a legal pad and my phone. I dont see any big surprises. Frankly, its about what i expected. We knew q4 was tough. We knew that the big breakthroughs didnt happen until q1-17. They were losing money for the first 3 quarters of 2016, and nobody expected them to turn a profit in q4.
If you are focusing on the end of year net loss, keep in mind that the whole toxic debt situation makes a mess of the financials. If you look below operating income in the p&l youll see large numbers from the expenses related to the additional stock issuance. You can also see offsetting really big numbers at the bottom of the balance sheet. These two numbers offset, creating a large expense...but keep in mind that this is due to financing activities and not ongoing operations. Loss it told us exactly what DY already told us. We knew all of this. (Keep in mind that we will see this again in q1-17, because the dilution continued until early March).
So, my preliminary? thought is that as of year end we had invested in a company that was losing money, and had a hole to dig out of. WE ALREADY KNEW THAT. I think DY was transparent about the situation....which I see as a positive.
For 2 months Ive been saying that the 10k can only be neutral or bad. Bad would have been if DY wasnt being honest with us. What we got was NEUTRAL. Which was the best that any of us really expected.
He gave us some good forward looking info on the call today. Some here have dd for q1 that they are excited about. So my take is that we are no worse off than we were yesterday, and theres a lot to look forward to.
All, of course, just my opinion.
