Sep. 13 at 10:29 AM
$LUFFF — the balance sheet is the issue.
At Q2: ~C
$29K cash vs C
$4.33M current liabilities, including ~C
$3.48M A/P & accruals.
Near-term obligations include: • C
$29,955/month financing payments through Mar. 2027
• C
$13,075/month lease payments
• C
$938K debentures at 14% (~C
$11K/month interest)
• C
$60K CEBA due Dec. 2026
• C
$140K export loan repayable from proceeds / within 1 year
• And after quarter-end, directors had to advance another C
$200K short-term working-capital loan, charging 0.65% in week 1 + 0.075% PER DAY thereafter — ~27% annualized, basically credit-card-level financing.
Operational improvements are nice, but when insiders are bridging working capital at ~27% with only C
$29K cash on the books, the capital structure is clearly far from fixed.
Financing/dilution risk remains very real.