posted on another forum:
Aanother day of reckoning coming this week?
"the time when one is called to account for one's actions,
to pay one's debts, or to fulfill one's promises or obligations."
The year end financials are due to be released any day now. Soon another awful quarter of numbers my guess a $2.9 Million operating loss
That loss would have been larger had they recognized assets which should be written down or wrtten off completely as a loss
$3.685MILLION loss from expected "sale" of SoTech... still listed as asset
$6.65 MILLION balance sheet as Intangible assets- not enough amortized
$25,582,433 goodwill mainly from Xtract still fully listed as goodwill ie not an asset
$3.1 MILLION loss quarter ending April 30th
How much cash left April 30th... $12.4million plus some receivables ($2.9Million) from ... so thats what 14 months of cash left unless revenue comes in?
There was this note about the $25MILLION in good will still on the books as well thats the total cost of buying Extract. Its not clear if contract revenue that young fellow JP will quote to you this month would even cover the Extract operating costs- they don't want to give that information. Becuase it wouls show how stupid it was to pay $25 million in business aquisition costs for something that connot sustain itself!!! They write about Extract saying..."The acquisition was accounted for under IFRS 3 - Business Combinations and not as an asset acquisition". Let me translate for the JP strategic people of this world, even the accountants at Patriot One were not allowing the Extract acquisition to be considered an asset- its goodwill- in other word it’s a joke as they clearly overpaid and have no source of revenue to right down the goodwill.
"Impairment of goodwill
After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, management must make critical estimates and use assumptions to project the value of each cash generating unit. Assumptions include future sales, profit margin and an appropriate discount rate. These assumptions will impact the valuation and impairment of goodwill."
My question is how does management makes estimates and assumptions about future cash flows and profits when there is clearly other posters raise questions raised about Patriot One's ability to remain a going concern. For April 30th, they show $67K in revenue with another $3.2 million quarter loss!
What is a going concern?
Going concern is an accounting term for a company that has the resources needed to continue operating indefinitely until it provides evidence to the contrary. ... If a business is not a going concern, it means it's gone bankrupt and its assets were liquidated.
While waiting for July 30th (year end) numbers, this means that the 1st quarter ending at the end of this month might show $7 MILLION left!!!! Those numbers will be released in early December at the latest.
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