Maybe NOT..(cont)
And we learned that some people think that next quarter's revenues might BEAT $25 million. A pretty good guess, especially since our Korean deal will make up $20 million of that. (But I don't see where the other $5+million will be coming from...my guess is $22-23 million.).
But we have to look at the good AND the BAD, and if you read the latest information reported by the company, we can see why some people and analysts are worried or skeptical .
FIRST, we have a 100 million share overhang, which is worrisome because the company says they need to raise capital.
"We will need to raise additional capital, and such capital may not be available on acceptable terms, if at all. If we do raise additional capital utilizing equity, existing stockholders will suffer dilution. If we do not raise additional capital, our business could fail or be materially and adversely affected. "
And the cash on hand numbers are not as robust as some might think, because:
"We have pledged approximately $38.2 million of our cash and cash equivalents as performance security and for letters of credit for certain banking requirements and contracts. As of October 31, 2017, outstanding letters of credit totaled $2.9 million. These expire on various dates through April 2019. Under the terms of certain contracts, the Company will provide performance security for future contractual obligations. The restricted cash balance as of October 31, 2017 includes $15.0 million which was placed in a Grantor’s Trust account to secure certain Company obligations under the 15-year service agreement for the Bridgeport Fuel Cell Park Project and is reflected as long-term restricted cash. The restrictions on the $15.0 million will be removed upon completion of the final module exchange at the Bridgeport Fuel Cell Park Project under the terms of the services agreement. The restricted cash balance as of October 31, 2017 also includes $17.0 million to support obligations of the power purchase and service agreements related to the PNC sale-leaseback transactions."
So I think DILUTION and TOXIC FINANCE is coming...maybe before the next ER in March.
