Baylin Technologies Inc Q2 2022 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Daniel Rosenberg - Paradigm Capital Inc., Research Division - Analyst : I just wanted to start on the balance sheet. Last quarter, you guys had been focusing on figuring out a strategy around renewing the debt or securing a new debt partner, and we had thought that would have been resolved at this stage. So just wanted an update on why that didn't come to fruition. And what you're thinking or what we may see in the coming weeks or months around securing financing?

Question: Daniel Rosenberg - Paradigm Capital Inc., Research Division - Analyst : And in terms of the covenants, you mentioned the recent liquidity amendment. Just where do you stand on your covenants as of today? I understand they were kind of waived for Q2, some of them. But just could you provide an update on what you're expecting for Q3 and Q4?

Question: Daniel Rosenberg - Paradigm Capital Inc., Research Division - Analyst : Okay. And then in terms of working capital flows and kind of cash burn, things can be lumpy just kind of on the timing of things and delays and there's a lot of moving parts here. Just can you provide a general sense of how working capital will flow in the next -- in the near-term, let's say?

Question: Daniel Rosenberg - Paradigm Capital Inc., Research Division - Analyst : Okay. So turning on to some of the operational aspects. I wanted to ask a question around the new products that you mentioned, Leighton. What's the opportunity, the market here that you're going after? And just some context in terms of how you see them in terms of profitability margin. Is it similar to some of the higher-margin products you have? Is it a broader volume type play? Just some context there, please.

Question: Daniel Rosenberg - Paradigm Capital Inc., Research Division - Analyst : All right. Really provides a lot of insight. Lastly, longer-term, as you think about the strategy for the company, do you see a level of scale that you need to kind of turn the corner on profitability? Or is it continued execution with what you currently have? What are the levers that you're thinking of prioritizing as you think about the company at a high level?