I submitted these questions. Let’s see what happens.
Convertible note 11, $120,000 of its principal balance was converted to common shares at a rate of 11 cents per share. The end result was nearly 1.1 million shares with a cost of 11 cents hitting the market.
The remainder of note 11 and all of notes 12 through 14 total $1.4 million in principal. Note 11 matured last Friday and the rest mature over the next 4 months. Assuming these notes are not repaid in cash and they convert at 11 cents each, that would be 12.6 million shares at 11 cents each flooding the market.
Does the company have a game plan to restructure its financing, or should the shareholders expect to continue to transfer wealth to the company’s debtholders for the foreseeable future?
In terms of liquidity, Q1 2019 we saw cash + receivables = $3.3 million while payables = $2.1 million. So cash and receivables could cover 150% of payables. Not only that, Cash was also at $2.1M and so could cover payables 100%.
This quarter, cash + receivables is $2.1M while payables and the note payable = $3.3 million. That means cash and receivables together are less than 66% of current liabilities. Worse yet, Cash is $600 thousand, and so is less than 19% of current liabilities as of 3/31.
Though EBITDA and operating cash flows have improved, they’re still negative for Q1, and it remains to be seen how covid-19 has impacted Q2 earnings and receivables collectability. Since delaying the payment of payables to vendors would harm operations, what steps is the company taking to improve the firm’s liquidity for the remainder of the year?
Since these questions were skipped in the March earnings call, I’m asking them again.
The Maine contract is the first government contract I know of that was cancelled before system launch. Does the company intend to continue pursuing government contracts? If so, can management provide color as to what happened in Maine and why shareholders can be assured that it won't happen again?
Seedtosale 2.0. What is the status of the development/launch of BioTrack's next gen product and how does management expect it to affect 2020 financial performance?
Can you provide any insight as to the revenues and expenses that the Americanex acquisition has added to the company's financial performance?
