Well I can't say their balance sheet is pretty - borrowings only partially offset by intangible assets and inventories, and a bit of cash resulting in negative shareholders equity of $0.5m at end December 2022 - thats a red flag.
Alas I can only see this increasing over the 2nd half of the year as I can't see a profit on the horizon for this half.
Negative shareholders equity I would have thought could often lend to a capital raising as companies rebuild their balance sheet - but I can't really see this being too successful here at the moment. They still have cash (via borrowings), so can struggle on for a while.
Still there is some hope or potential on the horizon, .... if they can make it.
There maybe a decent deal for Delcool to go on pillow liners coming - and the military still holds potential but likely still some time away.
The Colintons deal has given them some breathing space, and they have capacity to "cough" borrow even more if sales increase via their other facility - but I'm not sure if it's going to be enough and I think they may need to address that growing negative shareholders equity position.
Companies wanting to do deals (including the military) could shy aware from their balance sheet.
Interesting to think that $66.5m has been invested into this company ....
