Radient’s present liabilities exceed its property by $39.2 million.
Radient Applied sciences Inc. (TSXV: RTI) is searching for methods to remain open as unpaid taxes and a looming debt invoice value greater than $10 million comes due.
The pharmaceutical hashish extract producer reported its monetary outcomes for the primary quarter ending June 30.
The corporate reported income of $569,414, a 31% drop from the identical interval final yr. Web losses totaled $1.5 million, in accordance with regulatory filings, a slight enchancment versus a lack of $1.9 million the identical time final yr.
Radient mentioned that’s pursuing avenues to boost adequate working capital to permit the corporate to function as a going concern, “however can’t guarantee will probably be ready to take action.”
Gross revenue for the quarter was roughly $6,000, greater than 970% decrease than the $66,055 reported throughout the identical time final yr.
Moskowitz Capital Mortgage Fund II Inc. issued a requirement discover to the corporate on Aug. 26 for $10.5 million, plus accrued prices and extra curiosity. Radient mentioned it doesn’t have the cash and is making an attempt to determine a technique to maintain its land and property property, which it used as collateral.
In keeping with monetary filings, the corporate has $34,557 value of money that it obtained from a financing stipend (promissory observe). Radient’s present liabilities exceed its property by $39.2 million.
The corporate additionally obtained a requirement letter in Might from the Canada Income Company to pay taxes of an unknown quantity. By July, Radient was allowed to resume their hashish license for an extra six months, till early January. Whether or not the corporate will be capable to repay the tax debt by then stays up within the air.
“These balances and the modifications yr over yr point out that there are materials uncertainties that will forged important doubt concerning the firm’s capacity to proceed as a going concern,” the corporate wrote in regulatory filings.
“Administration has been capable of finance operations via debt and fairness financings and can proceed, as acceptable, to hunt financing from these and different sources; nonetheless, there are not any assurances that any such financings may be obtained on beneficial phrases, if in any respect. There may be no assurance that the steps administration is taking shall be profitable.”
Radient mentioned that it continues to implement the restructuring plan it laid out over the summer time by specializing in the corporate’s hydrocarbon focus and hashish pre-roll product strains.
The corporate mentioned it shipped greater than $1.2 million of hydrocarbon merchandise and pre-roll merchandise to clients and has product buy orders value round $2.5 million.
Nonetheless, administration additionally mentioned that it might want to discover extra capital to facilitate fulfilling product buy orders and development. How for much longer it has till it’s compelled to fold its fingers is unclear.
“The corporate has a historical past of serious working losses and expects to incur additional losses within the growth of its enterprise,” it mentioned in regulatory filings. “As such, the corporate’s standing as a going concern is contingent on its capacity to extend money flows or to boost additional funds via the issuance of fairness or debt.”
If unsuccessful, the corporate mentioned, it won’t maintain going.
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