PCTL has moved from toxic financing to a company on a cash flow basis to cover burn-rate in just 6 Months.
“But life inevitably throws us curve balls, unexpected circumstances that remind us to expect the unexpected. I've come to understand these curve balls are the beautiful unfolding of both karma and current.” Carre Otis
From the 3rd quarter 10Q:
Liquidity and Capital Resources:
A critical component of our operating plan impacting our continued existence is the ability to obtain additional capital through additional equity and/or debt financing. We do not anticipate generating sufficient positive internal operating cash flow until such time as we can deliver our products to market and generate substantial revenues, which may take the next full year to fully realize, if ever. In the event we cannot obtain the necessary capital to pursue our strategic plan, we may have to significantly curtail our operations. This would materially impact our ability to continue operations.
From the Press release dated April 21, 2020:
The conversation then turned to dilution and outstanding shares. Grieco noted that dilution occurred prior to January 2020, but shared that any shares that are currently being issued are meant for growth. “We are in a position as a company on a cash flow is the being issued are meant for growth. “We are in a position as a company on a cash flow basis to cover the burn-rate,” said Grieco.
“So, we finally have free available cash flow,” he added. “We have to expand very rapidly. We see a need, starting in July, to start delivering at least 25 systems a month,” said Grieco.
Why the dramatic change?
PCTL core business operations have exploded due to demand for their products.
From the March 25, 2020 and April 21, 2020 Press Releases:
“The demand for our products has been nothing short of explosive,” explains CEO Gary Grieco. “Due to this high demand, we are shifting our focus, in the short term, towards fluid production, sales, and distribution.”
The company has shifted its focus towards fulfilling an increasing number of fluid orders. To meet this growing demand, PCTL is expanding its production capacity and will double their current fluid production output within the next week to ten days.
Jody Read, COO stated: “We are still continuing to see significant interest in the facility-based Annihilyzer® Infection Control System. However, we are not able to coordinate installations due to travel restrictions and availability of hospital staff to implement the systems. We are continuing to build systems and at the same time utilize our current South Carolina facility’s capabilities with large volume systems to produce mass quantities of disinfectant for distributors and hospitals.
If one of our distributors did at least $700,000 in sales in March, I cannot fathom what the "PCTL" aka "the Mother Ship" sales were.
Also this distributor stated the following:
We have to take care of our existing customers, and their medical side that are front line and we’re also working with some new ones, but we definitely can’t meet all the demand. The largest companies out there can’t come close to meeting all their demands. So, obviously a young, family-owned business like ours, we’re doing the best we can.
So What does this mean?
PCTL still has to clean up their debt.
PCTL may need financing for growth and expansion if their cash flow isn’t enough to cover these requirements.
What is PCTL’s future?
“Optimism is a strategy for making a better future. Because unless you believe that the future can be better, you are unlikely to step up and take responsibility for making it so.”
? Noam Chomsky
The Annihilyzer® Infection Control System remains the company’s flagship product and continues to garner intense interest from prospective hospitals and healthcare facilities.
Due to increased attention as a result of the ongoing coronavirus pandemic, PCTL has been on an accelerated pace towards profitability and is preparing for double-digit growth into Q2 and beyond.
“Growth has been tremendous,” says CFO Marion Sofield, adding that the company is expecting to report record sales and revenues in Q1 2020.
“We have to expand very rapidly. We see a need, starting in July, to start delivering at least 25 systems a month,” said Grieco.
It is very promising and could really explode if they land BIG business from the UK. Testing is underway according to the April 16, and 21, 2020 Press Releases:
The first PCT system has now been installed in a large NHS hospital in the north of England. This system is expected to enter clinical service early in May once the final series of biological tests of the PCT hospital disinfectant solution have been completed. Results of these tests have so far demonstrated that the PCT disinfectant has met or exceeded its ability to kill the range of pathogens previously achieved during EPA tests in the United States.
Jolly then commented on the Company’s latest press release detailing a distribution agreement with the UK NHS company. Grieco shared that the agreement will likely begin with five systems starting in July and will later expand to fulfill the needs of their healthcare system.
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