Don't hold my words on this, but here's my interpretation:
1. Each year ATP's agricultural assets (eg oysters) are evaluated at the year-end market value, which affects their paper profit and payable tax. eg Last year their oyster may have a higher value, then this year their oyster is deemed to be worth $500k less on paper. The oysters are non-current assets so I generally do not pay attention to this much.
2. ATP has a very strong balance sheet with no debt, and only a small amount of Lease Liabilities. Their Cash alone can wipe out their Total Liabilities so nothing to worry about their Balance Sheet. Generally just look at their Current Assets vs Current Liabilities and see if they might have any issue with short-term liquidity.
Current Asset / Current Liabilities = Current Ratio. If Current Ratio >= 1.5 then the company generally has no issue meeting short-term liabilities. Quick Ratio is another acid test that you can look into (Inventory is removed from the Current Ratio calculation).
ATP Price at posting:
14.0¢ Sentiment: Hold Disclosure: Held
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