Atlantic Power & Infrastructure Corp. (AWSL)

[Gilda99]

Connecting the dots on the Q3-2013 financial issues...

Balance Sheet:
Cash is negligible at 9/30/13 – only $8,038 and it’s not because the Company is paying its payables timely. Accounts payable and accruals exceed receivables at 9/30/13 AND AWSL’S RECEIVABLES NOW EXCEED AWSL'S LAST NINE MONTHS REVENUES BY MORE THAN $500,000! Isn't this a problem? Duh!!!

Total liabilities continue to exceed total assets meaning that AWSL continues to have a total shareholders’ deficiency – negative equity. Even the $5.5 million in 12% preferred stock is unable to flip the deficiency to a positive equity position.

Statement of Operations:
Revenues reported for Q2-2013 were $1,477,105. Revenues for Q3-2013 slipped to $1,280,492. This trend is not your friend. Understandably, it’s very challenging to grow a business that isn’t collecting its receivables and can’t pay its payables.

AWSL’s modest margins don’t even cover the Company’s salaries and wages either for Q3 or for 9/30 YTD and the Company continues to operate at a loss of $300,692 for the past nine months.

Statement of Cash Flows:
Operations continue to consume cash. Only the issuance of the 12% preferred stock is reported as a source of cash flow and most of that isn’t really generating any cash – simply paying the noncash 12% preferred stock dividends.

In what universe does AWSL not have "going concern" issues to face up to at year-end 2013?

Gilda