TY @Malown1OK - now just a foreword (and forewarning) on Part A...

TY @Malown1

OK - now just a foreword (and forewarning) on Part A of the TLG Balance Sheet. My view is constructed on firstly what it is now and what I would like it to become. I acknowledge that there are many long term holders who have seen the equity value in the company reduced (no argument on this ... TLG has accumulated losses of $66.3M over many years ... not saying its a bad thing ... see AMZN or TSLA in their early days ... lots of funders will to step up that are very happy now). But the market value of equity and the book value of equity are not the same thing.

So the first iteration is the same. As should be evident ... NOT a Balance Sheet for a company with an EV = US$356M

ALSO NOTE a BS is a point in time "snapshot" and for the moment that point in time in June 30, 2020.
Things change and I will make some adjustments further down.



Same observations as SYR
Leverage Ratio = D/(D+E) = 17.8%
Debt/Equity Ratio = D/E = 21.7% ... or 22 cents of Debt for every $1 of Equity.
Even though there is no long term term there is still debt (e.g. Accounts Payable)
Plenty of room for expansion of the balance sheet.

The intermediate step of reformulating BS


which then takes us to



The BVE could be considered as = 7.242M/243,718,495 = $0.03 per share
The MVE of TLG is ~$1.80 per share or a P/B (Price to Book multiple) of 60X!!!One way of saying that is new buyers (e.g. me) are paying $1.80 for something that's "costs" 3 cents.
Time for that old chestnut of PRICE is what you PAY and VALUE is what you RECEIVE.

Whereas earlier @zoulou made a correct call in that the market is discounting TLG NPV by 90% and thus pricing failure, I could also make the comment that the market is pricing TLG as the "ultimate" growth stock.

Now for some adjustments as there are important BS changes that have occurred since June 30, 2020
1. A share placement of 20M raising $10M (before costs)
2. Options .... I'm going to look at "fully diluted" basis assuming all options exercised (and yes even those vesting 2023). This will add about 16.9M shares and contribute about $12.5M
3. Also allowing $5M for cash burn

This gives me a present time "pro-forma" of roughly ... and the thing to notice is the steep rise in CSE.



Now the BVE could be considered as = 24.742M/280,618,495 = $0.088 per share
With the MVE of TLG is ~$1.80 per share or a P/B multiple = 20.45
Leverage Ratio = D/(D+E) = 6%
Debt/Equity Ratio = D/E = 6.34% ... or 6 cents of Debt for every $1 of Equity.

This is a very strong balance sheet but still very small ... for a company with very big ambitions

Be aware there may be errors in the above ... I'm do not have CPA credentials (more of CFA).

If you find any let me know please as this is the starting point for my next post to get TLG to where I would like, which might get some "spirited" discussion.