Saturday, April 13, 2019

Good.v numbers a nightmare on dope street = $ 2.2m loss

In our experience there are 3 kinds of Venture numbers. Bad, really bad, and Good.v.

Lets get things rolling with a highly unusual blurb on the cover letter ... "We draw attention to Note 1 in the consolidated financial statements, which indicates that the Company has a net loss of $2,264,855".

First time ever I have seen warning to peruse the notes like this, up front. Auditors will use the 'going concern' to cover their arses every time, but to point out the bottom line loss in the cover letter is unique and very ominous. That cover letter is too long by about 4X.
Current liabilities are $17m against $38m in total liabilities. Cash was $781k at Dec 31, so, by definition Co is insolvent by a very large margin. Top so called assets are 'Intangible Assets' of $11,306,691 and Goodwill of $10,201,411. That's $ 21m that doesn't exist. These numbers represent the amount OVERPAID for grossly overpriced acquisitions.

"Redefining Your Health With the Greatest Visionaries of Our Time."
AR at year end was $ 20.5m. That number is saying this co isn't collecting a thin dime of the multi-millions of 'revenues' spewed by the main idiot every day. The FACT is absolutely ZERO cash is coming in and cash burn is something past $170k each and every month. Why those very overdue (more than 120 days) receivables have NOT been written off as bad debts is a mystery for the ages. We put it down to management scum.

4 unknowable 'customers' owe $ 17m+ that is long overdue. There are BNS credit facilities (fully secured???) that are racked. ($9.8m+) It is in default because the required coverage is 1.25 to 1 current assets to current liabilities. GOOD.v's ratio is microscopic.
"Wages and benefits of $469,548, listing bonus and transaction costs of $272,121 and share-based compensation of $254,011 ... In addition, the Company acquired certain patents from a company controlled by an officer of the Company in the amount of $625,000." That would be $ 1.6m to Jesse/Mikie in 2018.
Another $800k in cash went to others including the little missus. "cash outflows from operating activities of $11,945,334". That is a massive number, but one needs an appreciation of what that cash cost. Co issued 'subscription receipts' for "gross proceeds of $9,200,000. The Company paid $1,245,974 cash commission and issued 2,545,064 agents’ options"

This is a 'black box revenue scam' but it is also a 'scorched earth' play. The main crook is looting this co absolutely stupid and transferring the winnings to non-arms length conspirators via the paper acquisitions.

At current rates this horrid chit will be fully raped/looted well before year end. This paper is beyond worthless. Far beyond.

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