even after the horrible 3Q results. Shares still only trade a bit above one-half of Book Value. So yes, the stock price has discounted Armageddon. But that is a snap shot in time. Work remains to be done to confirm an ongoing entity. EBITDA needs to cover interest expense, but more importantly funds need to be available for short term debt payment and current portion of an equipment note.
"Expenses and charges related to this shutdown and liquidation of assets are estimated to be $2,350,000. Additionally, as a result of impairment testing conducted during the quarter, the Company recorded an estimated preliminary impairment charge to Goodwill related to continuing operations of $1,479,727"
This adds up to $3.892M
"and net loss of $3,469,000 for the three months ended September 30"
So $360K difference. Either thay had this profit, taking out Wireless which is hard to believe or there is still some loss to record on 4Q when they sell the remaining assets. What do you think?
not sure, but I bet some of the charges listed were pretax charges and reduced on a net basis by some tax benefit. Agree it is hard to believe the continuing operations were not in a significant loss position. The problem is we do not have a full income statement or 10Q yet. They just cobbled together some relevant info piecemeal and left us to guess at the rest. It would have been nice had they broken out the pretax and net impact of the charges. Probably felt they had to get some minimal data out in a release. Need to see the Statement of Cash Flow to see the actual cash impact of all this.
They still have to ultimately deal with Defense Products and the Predictor technology that apparently almost no one wants. That's a story for another day.