NuRan Wireless (CSE: NUR) this morning posted its third quarter financial results, posting revenues of $3.7 million for the period ended September 30. The revenues represent a substantial improvement over the $0.2 million recorded in the second quarter.
The improvement in quarterly performance was attributed to the growth in network as a service, or NaaS, mobile sites, as well as the delivery of a 2G/3G network to the Marshall Islands. Gross profit for the quarter improved from $0.1 million in Q2 to that of $1.2 million in Q3.
Operating expenses for the quarter meanwhile amounted to $3.3 million, lead by administrative expenses of $1.5 million and financial expenses of $0.8 million. Other expenses meanwhile came in at $0.5 million, as a result of a debt settlement of $0.6 million partially offset by a gain from an unwinded bankruptcy and a gain on written off accounts receivables.
Net loss for the quarter amounted to $2.6 million.
While the firms operating performance improved during the quarter, the company continues to exhibit trouble on its balance sheet. Cash as of the quarter end was just $73,281, while total current assets sit at $11.2 million, lead by inventory of $5.5 million and accrued revenues of $2.9 million. This cash balance is despite raising $2.0 million in gross proceeds during the quarter.
Accounts payable meanwhile sits at $5.8 million, with total current liabilities amounting to $12.1 million. Of note, convertible debentures totaling $4.5 million are also listed as current.
With regards to its cash position, the company has indicated that it has finally received approval for a US$27.0 million debt facility which it is now working on closing. Funding from the facility is to be used to implement network sites in Cameroon and the DRC. The delayed financing has resulted in the firm needing to acquire waivers of default from convertible debenture holders, the debt for which was issued just this past August. The company has until December 15 to close on the facility.
The company also continues to search for additional financing options to enable the construction of 4,142 network sites in Africa. NuRan however has been forced to reduce its rollout plan to preserve what little cash it has, however further details on just how much things will be scaled back were not provided.
NuRan Wireless last traded at $0.64 on the CSE.
Information for this briefing was found via Sedar, and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
