Mr. Daniel Russell reports
SYNEX INTERNATIONAL INC. ANNOUNCES REFILING OF 2ND QUARTER FINANCIAL DOCUMENTS
Synex International Inc. has refiled its unaudited interim financial statements for the three and six months ended Dec. 31, 2019, and related management's discussion and analysis in order to add greater clarity and insight relating to the continuing restructuring efforts, cash flow expectations regarding dividends, Kyuquot revenues, impairment recovery, line of credit terms and related party details.
For the three months ended December 31, 2019 ("Q2 2020") revenue decreased to $929,014 from $1,110,862 in the corresponding period in fiscal 2019 ("Q2 2019"). Electricity sales from Q2 2020 were $898,463, which is $157,911 lower than Q2 2019. For the six months ended December 31, 2019, revenue decreased to $1,354,783 from $1,522,470 in the corresponding period in fiscal 2019. Electricity sales for the six months ended December 31, 2019 were $1,286,988, which is $69,327 lower than the corresponding period in fiscal 2019.
The net income attributable to shareholders of the Company for Q2 2020 was $285,512 as compared to the net income attributable to shareholders of $3,728 for Q2 2019. The increase in net income for Q2 2020 as compared to Q2 2019 is primarily due to restructuring initiatives that include an overall reduction is staffing level saving $126,599 over the prior quarter as well as reductions in other categories. Going forward management remains aggressive in reviewing and assessing its costs structure to ensure maximum value for the goods and services it receives. The net income per share in Q2 2020 was $0.01 as compared to nil in Q2 2019.
The capital expenditures in respect of the development of run-of-river hydro projects in British Columbia for Q2 2020 were $53,925 as compared to $63,223 for Q2 2019. The capital expenditures in respect of the development of run-of-river hydro projects in British Columbia for the six months ended December 31, 2019 were $60,306 as compared to $123,393 for the six months ended December 31, 2018.
At December 31, 2019, the Company had a cash balance of $495,757 as compared to $499,436 at June 30, 2019. The total loan principal outstanding to the Canadian Western Bank was $13,828,088 at December 31, 2019 as compared to $13,794,104 at June 30, 2019. Loans payable at December 31, 2019 included a current portion of $13,366,299 and a non-current portion of $461,789.
The Company is a run-of-river hydro developer, operator and engineering firm. The Company wholly owns or has a proportionate interest in a net total 12 MW of operating facilities in British Columbia, and a Vancouver Island grid connection and utility carrying on business as Kyuquot Utility. The Company also has 9.4 MW of construction ready run-of-river projects, and applications and land tenures on another 24 potential hydroelectric sites totaling over 150MW of installed Capacity in British Columbia.
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