Powertech releases quarterly financial statements
Posted November 22, 2007, Updated November 24, 2007
Powertech recently filed its second quarter
(September 30, 2007) interim financial statements with Canadian
securities regulators. Powertech's interim financials are
not reviewed or audited by an independent accountant. As of November 25,
2007, the second quarter financials have not appeared on Powertech's
website even though they have been filed for eleven days. Apparently,
the company is in no hurry to have investors reading them. The financial
statements can be found on the SEDAR site (System for Electronic
Document Analysis and Retrieval), the electronic filing system for the
disclosure documents of public companies and investment funds across
Highlights of the financial statements (all amounts are in Canadian dollars):
- The net loss for the period was $848,000, and the cumulative losses for the company are $17.2 million.
- $157,000 was spent on "community and media relations".
- In the six months since March 31, unpaid bills have increased from $649,000 to $2.2 million.
- The company spent $3.4 million of its cash, leaving it with $10.7 million. At this rate, its remaining cash will last less than 10 months unless more stock is sold to investors.
Disclosures to investors include the following warnings:
- The Company has limited financial resources. The Company will continue to make substantial capital expenditures related to exploration, development and production. In particular the Company will have further capital requirements as it proceeds to expand its present exploration activities at its uranium projects, or to take advantage of opportunities for acquisitions, joint ventures or other business opportunities that may be presented to it. In addition, the Company may incur major unanticipated liabilities or expenses. There can be no assurance that the Company will be able to obtain necessary financing in a timely manner on commercially acceptable terms, if at all.
- The Company’s mineral exploration and
planned development activities are subject to various laws governing
prospecting, mining, development, production, taxes, labour standards
and occupational health, mine safety, toxic substances, land use, water
use, land claims of local people and other matters. Although the Company
believes its exploration and development activities are currently
carried out in accordance with all applicable rules and regulations, no
assurance can be given that new rules and regulations will not be
enacted or that
existing rules and regulations will not be applied in a manner which could limit or curtail production or development.
- The process of obtaining radioactive materials licenses (“RML”) from the US Nuclear Regulatory Commission and those required in the States that the Company is operating in allow for public participation. If a third party chooses to object to the issuance of any RML or permit required by the Company, significant delays may occur before the Company is able to secure an RML or permit. Generally, the public objections can be overcome with the passage of time and through the procedures set forth in the applicable permitting legislation. However, the regulatory agencies must also allow and fully consider public comment according to such procedures and there can be no assurance that the Company will be successful in obtaining any RML or permit.
- The Company has never had uranium
producing properties. There is no assurance that commercial
quantities of uranium will be discovered at the Properties or other
future properties nor is there any assurance that the Company’s
exploration program thereon will yield positive results. Even if
commercial quantities of uranium are discovered, there can be no
assurance that any property of the Company will ever be brought to a
stage where uranium resources can profitably be produced therefrom.
Factors which may limit the ability of the Company to produce uranium
resources from its properties include, but are not limited to, the spot
price of uranium,
availability of additional capital and financing and the nature of any mineral deposits. The Company does not have a history of mining operations and there is no assurance that it will produce revenue, operate profitably or provide a return on investment in the future.
- Sales of a large number of Common Shares in the public markets, or the potential for such sales, could decrease the trading price of the Common Shares and could impair the Company’s ability to raise capital through future sales of Common Shares. Substantially all of the Common Shares can be resold without material restriction in Canada.