I said they do not own the property that ARIA is operating out of currently. They sold off nearly all of the Canadian operations to buy into the Florida operations. The CEO himself sold Ethema the Canadian assets. Bottom line is that they have $4 million in assets and $19 million in current liabilities. They have lost a lot of money moving the ARIA operation around and the bill has come due. They lost $3 million alone in nonrefundable deposits on the failed West Palm Beach property purchase.
Bottom line is that they own very little relative to the $47 million in posted losses indicated by the accumulative deficit number and the $19 million in current liabilities. They are not good business people. ARIA should not need to sell off 75% of their company to get started again if they had been very profitable.
They apparently need to raise over $6 million for 2021 to cover obligations. This is for a company that has been posting less than 100K a quarter in revenue. They are due for another debt repackaging and kick some debt down the road a little further in my opinion. They do this about every 6 months and run a PR about paying off notes. I find it hard to believe that they will let the LABRYS fund of over $1 million in conversions coming due in November stand. But again, they are in a fix when it comes to debt. The price protections allow note holders to essentially double their money so $1 million is actually $2 million in shares.
"Over the next twelve months we estimate that the company will require approximately $6.5 million in funding to repay its obligations, if these obligations are not converted to equity and for funding working capital as we continue to seek opportunities for addiction treatment in the US markets. There is no assurance that the Company will be successful with future financing ventures, and the inability to secure such financing may have a material adverse effect on the Company’s financial condition. In the opinion of management, the Company’s liquidity risk is assessed as high."
Total liabilities $19,105,744 June 31, 2021 18,448,565 Dec 30, 2020 Total assets $4,193,033 Revenues were $96,158 three months ended June 30, 2021 Net loss was $(2,626,438) for the three months ended June 30, 2021
Accumulated deficit June 30 - 47,504,454 and 44,858,784 as of March 31
This has been the only source of income up till now ..with Aria coming in now and showing up to $1M + per quarter of operating income from a treatment center business..how does this play going forward. Frankly they need to sell this property if they are not going to use it in a future expansion of the business and pay off some debt...we're not in the leasing business last time I checked