You actually expected this 10k to be met with a fanfare of trumpets and thunderous applause, didn’t you? This 10k is a complete TRAINWRECK. Period. Full stop.
“Geopolitical conflicts and uncertainties as well as risks of recession, high inflation alongside energy costs, and interest rate rises and means global conditions remain challenging going into 2024.”
You should have left all those excuses out and put the only one that’s accurate in - “piss poor company management”.
PISS…..POOR…..COMPANY….MANAGEMENT
NET LOSS
2023 - $(713,083)
2022 - $(626,428)
A loss is a loss is a loss. Use any old excuse you’d like, it’s still a loss. And the loss is widening. Diagnosis - FAILING.
“Management considers earnings (loss) before interest, taxes, depreciation and amortization, or EBITDA, as adjusted, an important indicator in evaluating our business”
Even on your non-GAAP EBITDA, as adjusted, the loss widens:
2023 - $(368,569)
2022 - $(360,207)
Conclusion - the evaluation of your business by YOUR OWN standards: FAILING
“The Company has outstanding loans and convertible notes payable aggregating $3.0 million at August 31, 2023 and doesn’t have sufficient cash on hand to satisfy such obligations. The preceding raise substantial doubt about the ability of the Company to continue as a going concern. However, the Company generated proceeds of approximately $471,000 from financing activities during fiscal 2023. The Company also has a non-binding Commitment Letter from an investor of $250,000 which also includes a right of first refusal on additional capital raise up to $3 million which will contribute to satisfying such obligations and fund any potential cash flow deficiencies from operations for the foreseeable future.“
No shit.
Let’s see -
+ $471k from “financing activities”
+ $250k NON-BINDING commitment
+ $3M NON-BINDING right of first refusal commitment
+ 48k profit
=3.77M in potential safety net
- $3M debt
- $713k net loss
= OOF
Yeah - I’d say you got problems on the near term horizon. The “foreseeable future” must be in a DENSE fog because, with the numbers provided, foreseeable is not very away. Talk about working without a net. You’d better buy a whole case of lip gloss and new set of knee pads because if that investor decides on the “NON” part of the “non-binding”, you’re totally screwed.
As accurately predicted, this 10k is a COMPLETE dumpster fire from beginning to end.
Which signifies a complete and abject FAILURE at every level of management.
AI
