| Novra Technologies Inc. Due Diligence Report
Symbol: NVI.V
Price: $0.08
Common Shares: 22,387,993
Insider/Institutional Holdings: 12,042,430(53.4% as per SEDI & Sedar)
Website: http://www.novra.com
Most recent financial results( Ending Sepetember 30th 2015)
ASSETS
Cash: $420,346
Accounts Receivable: $869,025
Notes Receivable: $133,909
Inventory: $678,283
Prepaid Expenses: $136,980
Options: $5,584
Equipment: $26,036
GIC : $200,000
Total Assets: $2,470,163
LIABILITIES
Line of Credit: $665,000
Accounts Payable: $645,185
Deferred Income: $7,996
Due to related party: $250,000
Current portion of long term debt: $98,470
Long Term Debt: $372,959
Total Liabilities: $2,039,610
**NOTE** NVI is cash flow positive, except will show a loss in the last quarter due to options expiring. These were given to NVI for a deal that was done in 2014(see MD&A below for more information).
Q3 Sales
Revenue: $662,877
Gross Profit: $262,644
Net Income: $125,338
Loss on Options: $203,316
9 Month Sales
Revenue: $2,033,326
Gross Profit: $870,992
Net Income: $423,908 or $0.02c EPS
Loss on options: $39,734
MD&A Highlights
Novra Technologies Inc. (“Novra” or the “Company”) offers premium broadband receivers/routers and applications for satellite and terrestrial broadcast markets. Novra's products are value priced, standardscompliant and enable delivery of Internet, multi-media files, weather data, video (IP-TV) and audio streams using the Internet Protocol (IP) over DVB/MPEG digital TV broadcasts. Novra has three product families: DVB-IP encapsulators, satellite and terrestrial broadband receivers and a multimedia distribution and management system for digital signage and captive audience networks. Novra's products are sold worldwide through sales agents, resellers, solution integrators and service provider partners.
In February 2014 Novra announced that it had agreed (subject to Novra’s due-diligence) to acquire two US based technology companies. Wegener Communications, a publically traded US based communications technology company located in Atlanta GA and Westport Research and Associates, a private company based in Kansas City, MO.
Since the announcement, Novra has worked closely with Wegener to help it restructure most of its debt and assist with inventory purchases and marketing. Westport also had changes made to it operational and ownership structure and it is in a much better position to be acquired by Novra. We expect these acquisitions to complete within the next 6 months.
Novra also agreed to become a low margin supplier to Wegener Communications, and as part of this agreement, Novra was given an option to purchase up to 15,000,000 Wegener shares at $0.03 each. This stock option expires on December 31, 2015. For this reporting period this option has generated unrealized loss of $60,995 which is reflected in our reported results.
Despite challenging world economic conditions in the past couple of years, we continue to see positive results from our considerable engineering and marketing efforts in the last few quarters. Novra’s products have been selected and proposed for a number of major projects which we are anticipating will generate higher 2015 receiver sales compared to our 2014 receiver sales. We are in discussions with government and military organizations to customize and expand our products to meet requirements as they replace existing infrastructure and move to new technologies.
This is a very long MD&A and I recommend that you go to www.sedar.com and continue reading from there. |
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