- Hi Van. One thing to think about is How many 50 cent companies have no debt? And are fully operational? Not many. We can just grow from here with new contracts which will come. And these are sticky complex contracts that re typically long term 3-5 years... and there is subscription revenue etc
- At March 31, 2021, cash and cash equivalents totaled $7.4 million ($7.2 million at December 31, 2020). Working capital (current assets less current liabilities) was $5.9 million ($6.2 million at December 31, 2020), and the Company has no debt. Assuming customers renew and pay their 2021 contracts for CIM usage similar to fiscal 2020 and there are no significant changes in its current business strategies and cash consumption, the Company believes it has sufficient cash on hand to fund its business and growth strategies as envisioned.
- The Company focused on advancing Cathodic Protection (for which prototype SaaS versions were first made available to private preview users in the Fall of 2020) and Risk functionality during the quarter. On March 9, 2021 the Company announced the acquisition of intellectual property that is being integrated into the CIM platform as a component of its Risk functionality. The acquired IP includes algorithms and processes that leverage machine learning to perform data analytics associated with measuring the probability that anomalies found in pipeline inspections might cause the safe operating pressure of the pipeline to be exceeded. This analysis, often referred to as probability of exceedance ("POE"), supports the prioritization of on-going inspections and mitigations and aligns with regulatory requirements mandated by PHMSA 192 & 195 safety statutes for U.S. pipeline operations.
ACTIVITIES SUBSEQUENT TO MARCH 31, 2021
On April 7, 2021
the Company announced that one of the largest refined products pipeline companies in the U.S.A., with pipelines spanning Texas to the North Eastern U.S seaboard, entered into a multi-year agreement to use CIM for integrity management of its pipeline operations.<- Respect Van!
On April 20, 2021
Phillips 66 Pipeline LLC ("P66"), the Company's first CIM client, was awarded the
Distinguished Pipeline Safety Award by the American Petroleum Institute, which has 600 members representing all segments of the U.S.A.'s natural gas and oil industry. This award recognizes operators who have distinguished themselves as champions of industry innovation and operational excellence. P66 was selected as the winner in the large operator category after recording an outstanding year in employee safety
and for its use of comprehensive risk modelling and a health, safety and environment management system that resulted in zero pipeline system release events.<-- Van. Additionally, P66 was noted for its commitment to cutting-edge research and development that has potential to improve pipeline safety for the entire industry. P66 uses CIM as the key component of its pipeline integrity management system.
On April 27, 2021 the Company announced a joint initiative to deploy
C-FER's risk models on the CIM platform, which Management believes will deliver the most advanced integrity and quantitative risk management solutions available for oil and gas pipeline operators today.<-- somewhere burried in here my guess is the anti ransom ware stuff....
BUSINESS OUTLOOK
Management is pleased with the Company's activity during Q1 2021 to advance our technology, solutions, market presence and opportunities, which are proceeding in accordance with expectations.
We remain confident that our first mover advantage in leveraging machine learning, data science and cloud computing continues to provide a strong competitive moat and that knowledge of the high value that CIM contributes to clients is becoming better known globally through technical publications, presentations and word of mouth referrals, which we believe will assist the Company to continue to gain market traction.
Interest in our CIM solution has grown
due to sales activities currently underway in the U.S.A., Canada, Australia, United Arab Emirates, Brazil, and Argentina with numerous CIM Production Trials planned or in various stages of completion, which we anticipate will result in completed sales in future periods. Various business development initiatives are also underway, with objectives to recruit additional CIM resellers and pursue new potential markets and revenue sources based on our CIM technology and platform.
Given the Company's strong balance sheet with $7.4 million of cash and equivalents at quarter end, no debt, current cash burn rate, and anticipated revenue going forward, Management believes the Company is well-funded to execute current business plans as envisioned without requirement to raise additional capital.
Go Ahead Bad Mouth That!
