My last review of Cematrix was six months ago, after their 2025 annuals - an upgraded review to 3.75 stars. In that article, I referred to their past twelve months as a one year heater. If you go further back to my March 2025 What’s Wolf Watching where I called out a Buy Zone, the stock is currently up 215%.

I have a busy upcoming weekend on the golf course, so let’s skip the typical preamble bullshit and see what Cematrix has been up to over the past two quarters.

Balance Sheet:

As I have just come to expect over the past couple of years, CEMX sports a very solid balance sheet. They have a current ratio of 5.4 that consists of $16.2M in cash, $13.5M in receivables and $1M of other short term assets over top of less than $6M in liability commitments over the next twelve months. Their cash position alone covers those liabilities alone by a factor of more than 2.7 so liquidity looks excellent.

$2.5M of the company receivables are within holdbacks. As for the remainder, it does look much cleaner than it did six months ago with greater than 90 days shrinking from 19% to 6%. Their terms are 30-90 days and they don’t distinguish which are overdue, so while their table above is good disclosure, it’s not perfect. I have beaten them up a little bit in past reviews so it’s important to note the improvements here.

In terms of long term liabilities they have a small equipment loan under $1M and $1.6M in deferred liabilities to the tax man.

Very good shape overall.

Cash Flow:

Through six months, Cematrix has been an operationally cash flow producing beast compared to last year, generating $5.7M in OCF vs burning $875k at the same point last year. Receivables spiked in the quarter due to their great sales performance which makes their Q2 OCF of $1.1M look soft compared to their first quarter of $4.6M. I’ve yet to look at their P&L but I can already tell it’s going to look great based on this.

Very little occurring within investing and financing activities YTD, but the company has repurchased a small amount of stock and made minor investments of under $450k, and reduced that equipment loan by $324k YTD.

Overall CEMX has improved their cash position by 36% from the start of the year.

Share Capital:

• 149.4M shares outstanding, 275k less shares outstanding from the start of their fiscal year

• 690k shares repurchased through their NCIB YTD

• 8.2M warrants WERE outstanding as of their quarter end, but were set to expire two days ago. 7.3M were well out of the money at 60 cents with 880k of broker warrants at 51 cents. Hard to imagine any of these were exercised.

• 5.3M options, all ITM between 18.5 and 43 cents. The company does not list an expiry table and I’m too lazy to go digging for one.

• 3.1M RSU’s

• Minor insider ownership of 3.5% with 3% held by institutions (per Yahoo Finance)

• Insiders have been allergic to buying in the open market

Income Statement:

After a decent quarter in Q1 on the top line when Cematrix posted a 10% increase over last year, the company went deep to straight away center field with an $18.7M revenue quarter, 76% above what they did in the comparable period.

Those revenues did come at the expense of some margin however, losing nearly 400 basis points to last year coming in at 35% vs 38.9%. Therefore on 76% more business, they generated 59% more gross profit dollars.

What Cematrix lost in margin, they made up for in operational leverage, actually spending 5% less in expenses - very impressive when you generate that large of a revenue gain. That leverage extends to their YTD totals as well.

At the bottom, they generated $3.5M in net income for the quarter, 18.6% of revenue and 161% better than last year.

On a YTD basis through six months:

• Revenue of $26M, up 51%

• 450 basis points of erosion in gross margin - 27.8% vs 32.3%

• Gross profit dollars up 30%

• 7% reduction in operational spend

• Net income op $2.3M vs $425k

Since I’ve discussed their margin erosion, it’s important to note the company’s rationale from their MD&A:

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Summary:

While the stock gained a penny yesterday after releasing these earnings the night before, the volume certainly looked a little muted compared to previous earnings periods.

Were investors not entertained?

The company had a record second quarter and a record first half. It was also their best single quarter the company had since Q3 of 2023.

When I put CEMX in a Buy Zone sixteen months ago, their market cap was around $26M. That now sits at $78M. Have they plateaued or is there more upside?

Backlog is down 9% from the beginning of the year and 12% from their previous quarter end so that could explain some of the markets rather uninspiring response on what were excellent numbers. In addition, the company is also up against much stronger numbers in the back half of the year and this piece of commentary within the MD&A suggests they will not have a repeat significant increase in Q3 as they did here. That would also be a QoQ sequential decline - that is never going to get retail investors juices flowing, even in a lumpy revenue business like this.

The CEO was also a little non committal on the great operating expense leverage they have gained, and whether or not that would continue. You can find the whole transcript of their earnings call here.

They currently trade at a 13.2 P/E at 8x cash flow and 6.7 EV/EBITDA numbers. So with the company projecting flat Q3 revenue, my conclusion is the company is pretty close to fair value - therefore Cematrix remains more of a hold than in a buy zone situation.

Insiders could step up to the plate more often and put their money where their mouths are, that’s for sure.

Maintaining the 3.75 score.

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Disclaimer:

My intent is for my reviews to be a bolt on to due diligence that you have already completed. I receive dozens of review requests a week, therefore my own DD may be great or none whatsoever. Unless otherwise stated or implied, my opinions are on the financial performance of the company based on their most recent filings. I conduct these reviews to assist other retail investors whose research skills are limited when it comes to reviewing financial statements. I do not accept compensation of any kind from companies I review.

Wolf FINS Reviews are intended to be informational and are based on personal opinion. They are not intended to be financial advice, and all readers are encouraged to perform their own due diligence prior to their investment decisions, including discussions with their investment advisor.

About a year and a half ago, I decided that simply choosing annual picks for the following year sometime in mid December was leaving potential opportunities on the table the rest of the year. That’s when I decided to launch mid year #SealOfApproval picks for those special opportunities that arise.

D-Box Technologies ($DBO.TO) was my first in February of last year and as of today that has delivered a return of 762%. Fast forward to February of this year and Biorem became my first mid year pick of 2026 at $2.42. It is currently up 25% from that selection, peaking at 48% or $3.57 in May after their first quarter was released which became a “sell the news” event. A move which I was puzzled by particularly since those financials received an upgrade to four stars and their second consecutive upgrade as well.

Prior to their financials coming out this morning, they traded at an 11.3 P/E with an EV/EBITDA ratio of just 5.9.

The headlines appear very impressive with a 66% revenue increase and increasing their profitability by over 260%. So, could we be looking at a company about to set new all time highs ($3.80), or are there some fly’s in the ointment we must consider?

Let’s find out.

(Free release scheduled for Aug 4)

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The first seven months of AirIQ’s fiscal year received a lot of fanfare sending the stock up 86% but they have been in retreat mode since hitting their 52 week high back in February, giving back 30%.

My previous review came just after hitting that 66 cent high and I rewarded them with a handsome 3.75 star review. At the time I said if you were holding cheaper shares it was probably worth the hold but due to the lack of liquidity in the stock, there appeared to be some significant risk taking a position above 60 cents.

In my more recent July What’s Wolf Watching article, I put AirIQ in a conditional Buy Zone between 47 and 49 cents. It never did get there leading into earnings - but it is now. So are this results still worthy enough of considering taking a position here? Let’s find out.

Balance Sheet:

A very solid current ratio but overall consist of some pretty minuscule numbers. Their balance sheet consists of $1.6M in cash, $600k in receivables, $410k worth of inventory and $165k in prepaids overtop of $1.1M in one year financial commitments within A/P and accrued liabilities. AirIQ is not only debt free, but long term liability free as well. Their cash and receivables also cover their liabilities by a factor of more than two, so liquidity is strong as well.

Cash Flow:

AirIQ was operationally cash flow positive for the year, generating $1.29M, an increase of 30% over last year.

Relative to their size, they invested heavily with $2.7M of cash outflow within investing activities - $850k acquiring customer contracts, $460k investing in software and $1.36M in rental units.

They bought back $200k in shares and received $78k from options during the year as well. Due to the investments their cash position actually depleted by about 50% during the year despite the strong operational cash flow performance.

Share Capital:

• 29.5M shares outstanding with virtually no dilution over the past years. Share buybacks have offset stock option exercises for the most part.

• 1.75M options outstanding. All ITM but none expire in the next two years

• 611k repurchased in 2025 and 1.12M over the past two

• 41% insider ownership but no activity in the open market thus far in 2026

Income Statement:

Revenue increased to $6.5M during their 2025 fiscal year, up 17%. Gross margin was slightly off by 140 basis points but still a very strong 59.8%. Gross profit dollars therefore rose by 14.5%.

The company converted well within their operational spending which grew by 6.7%, less than half of the growth rate of their sales and GP.

They look excellent on the income before other expenses line, $974k vs $667k, up by 46%. Unfortunately, there were a few hiccups beneath that. $214k in additional tax re-assessments, a $114k bogey in foreign exchange to last year and less interest income on their cash position, all contributed to a 50% reduction in their net income compared to last year - $104k vs $203k.

On the quarter, revenues were up by 40% with some additional slippage in margin and operating profit increased by 44%. Unfortunately, the tax re-assessment and other items hit hard in Q4 resulting in a net loss of $150k.

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Summary:

In my last review, I referred to AirIQ as small potatoes and when you have one little item like their tax re-assessment, that can put a damper on a good year and that appears to be the case here. After their third quarter, the company’s YTD net income was 55% greater than last year. At year end, they achieved half.

That 32 P/E ratio I discussed last quarter just turned into 144 as a result. They do look more attractive on an EV/EBITDA ratio at 8.8 and trade at 11.3x cash flow.

One of the most attractive parts about the company is their recurring revenue model which makes up 91% of their total revenue. That sets them up for a couple more solid revenue quarters to begin their 2026 year.

One of the lesser attractive things about AirIQ is the stocks liquidity. It can go days without trading a single share. Their largest volume day was 76k shares traded in the past year, and only traded 143k shares in the past thirty days.

I’m not anti illiquid stocks, but they have to impress me a little bit more to take that leap due to the increasing risk.

I continue to contend that AirIQ is a solidly run business, but they don’t quite meet the risk/reward criteria for me. Slight downgrade to 3.5 stars due to the valuation metrics getting slightly more expensive here.

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Disclaimer:

My intent is for my reviews to be a bolt on to due diligence that you have already completed. I receive dozens of review requests a week, therefore my own DD may be great or none whatsoever. Unless otherwise stated or implied, my opinions are on the financial performance of the company based on their most recent filings. I conduct these reviews to assist other retail investors whose research skills are limited when it comes to reviewing financial statements. I do not accept compensation of any kind from companies I review.

Wolf FINS Reviews are intended to be informational and are based on personal opinion. They are not intended to be financial advice, and all readers are encouraged to perform their own due diligence prior to their investment decisions, including discussions with their investment advisor.

A 2024 Wolf Pick at 43.5 cents to a seven bagger at $3.14 last October only to retreat to lows of $1.06 just five months later. Since then GSI has been a pretty good swing trade moving between $1.10 and $1.60 on three separate occassions.

Unfortunately (for me), I think I made more money swing trading Gatekeeper recently than I did on the original pick as I exited the stock prior to their tremendous news flow in the middle of last year.

The news flow has been great for the company over the past year but the same cannot be said for their financial performance. In 2023 Gatekeeper delivered 10% net profit margin on $28M in revenue. In 2024 that slipped to 5%, and last year they lost $3.1M in net income on declining revenue.

I did not review Gatekeeper’s Q2 with my last review coming in January after their Q1 results. Those results were rather horrific with their worst top line performance since Q1 of 2023, poor margin, increased operational costs, a $1M net loss and a whopping $9M of operational cash burn. That review received a downgrade all the way down to 2.5 stars.

Most investors knew the top line would eventually come around with the plethora of new contracts announced last year and thus far into 2026. Recently, in my July What’s Wolf Watching article for paid subscribers, I called out a $1.10 - $1.18 Buy Zone and had the following to say:

Astute investors had a brief opportunity last Friday when the stock dipped into that Buy Zone. After their results were announced Tuesday evening, the stock bounced 17% for a total gain of 25% if you were able to catch that Friday dip.

So where does Gatekeeper go from here. While the stock gained 17% yesterday it had trouble getting past $1.60 resistance - the fourth failed attempt to do so since February. Is it headed backwards once again, or are these results enough to start working it’s way back to set new all time highs?

Balance Sheet:

Gatekeeper has an excellent current ratio of over 12 that consists of $7.2M in cash, $14.5M in accounts receivables, $17.4M worth of inventory and $2.3M in prepaids over top of just $3.36M in current liabilities (def revenue removed) due over their next twelve months.

Their current ratio which is a better liquidity measure is not quite as impressive as just 17% of the company’s current assets are in cash, but it still exceeds their one year commitments by a factor of greater than two.

Their accounts receivable does present somewhat of a yellow flag, and the company has never been great with full disclosure when it comes to their A/R. On a YTD basis their revenue is up by 39% while their A/R is up by 83%. That could be just timing differences (late quarter revenue recognition) but there is one note in the MD&A which is troubling.

29% of their receivables are 90 days past due, and that percentage was only 15% three months ago. When nearly 1/3rd of your customer base is not only paying their bills late, but very fucking late, at best it presents cash flow problems and at worst can result in large write-offs. 29% of their A/R works out to be greater than $4.2M. Their credit manager needs to start banging some heads.

Outside of that, the balance sheet is relatively clean, and includes zero debt. In fact their only long term liability commitments are $190k in future lease obligations.

Cash Flow:

I already mentioned that they had a terrible cash flow quarter in Q1 with $9M in operational burn. They followed that up with $4.5M of OCF burn in Q2 and another $6M here in Q3 for a total of over $19.3M through the first nine months of the year.

Every working capital adjustment is going the wrong way here. Receivables, which I discussed, a $5.5M investment in inventory, and $9M in prepaid expenses and reducing their accounts payable.

Paying your bills on time while your customers are not is a terrible cash flow combination and this is responsible for $14.5M of their burn problem. While revenues are up, they are not getting sell through turnover on their inventory. In fact, it is up again from their second quarter by another $2.7M, and up 234% from this time last year.

The biggest reason their balance sheet is in such great shape is due to the $13.5M (gross) raise of capital back at the start of their fiscal year in November. That raise was also notably done at $2.10 share creating some bagholders who are currently down 26% on that cash outlay. That raise came with nearly $1M in costs, they received $230k into the treasury from options and have made minimal asset investments of $158k YTD. Overall their cash position has depleted by nearly half from the start of the year despite that large influx of cash in November.

Share Capital:

• 111.2M shares outstanding, 12% dilution over the past year, mainly due to the November raise with 920 options exercised YTD

• 3.9M options outstanding, all but 100k ITM. About 1.1M should be exercised within the next year

• Minimal 5% insider ownership with small institutional participation (1.5%). Retail investors definitely control the show here

• Only insider activity in the past year was the CEO selling 4M shares last September at $1.60

Income Statement:

Third quarter revenues were excellent at $12.5M, a 68% increase over the comparable period. Gross margins were fantastic as well, rising by 400 basis points to 53.1%, resulting in an 82% growth in gross profit dollars.

Operating expenses were also reasonably controlled, growing by 23% on 82% more GP dollars. All of their three main expense buckets, G&A, Selling and Marketing and R&D rose by similar amounts between 20% & 25%.

That is all going to result in a tremendous swing in their profitability. Gatekeeper also had a $600k birdie to last year in foreign exchange so their net income for Q3 came in at $2.3M, compared to a $300k loss a year ago - quite the dramatic turnaround and as a result, a Wolf Trifecta on the quarterly results.

YTD Performance:

• $28.8M in revenue, an increase of 39% over their first three quarters

• 47.8% gross margin, 370 basis points higher than last year, delivering 51% more gross profit dollars

• Converted well in operating expenses, growing by 24% giving them a double Wolf Trifecta

• A total net income turn around of nearly $2M, $1.03M in net income vs a loss of $920k last year

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Summary:

After six straight quarters with a net loss, Gatekeeper reversed that trend in a big way delivering over $2.3M of profitability and net income of of two cents/share.

The question going forward for them is whether or not this is a new inflection point of more regular results like this to come. The opportunity is certainly there. Given their 2025 results and the first two quarters of 2026, I’m not sure I agree with the slides title below, but the contract wins announced this year does give some indication that the top line will look solid in future quarters.

Without knowing a company’s close rate or how they manage their CRM, I don’t take a lot of stock in company’s pipeline numbers, but for what it’s worth that exceeds $300M. So in addition to the contract wins, the North American future opportunities are massive.

Given that Gatekeeper already has relationships and contracts in some of the major N.A. metropolitan areas (Toronto, NYC, Philadelphia, Atlanta), that provides them with a competitive advantage for going after other large cities bids for mass transit and school bus fleets.

When GSI first started announcing some of their large contract wins last year I did have questions on whether or not they had to pull their pants down when it came to margins. So far that doesn’t appear to be the case. Operating costs have also begun to stabilize in the $4.1 - $4.3M per quarter range. Therefore if they continue to keep pumping out $12M+ quarters, their bottom line should continue to deliver.

Looking at it from that purely bullish lens would be ignoring some of their other challenges however, and their largest one right now is the sorry state of their cash flow. Their accounts receivable and inventory numbers are the current two pain points. They need to collect better and on time and need better sell through on inventory levels. Their $21M TTM burn is unsustainable. The good news is this can turnaround rather quickly, the bad is a potential raise in two quarters if it doesn’t, and that would be managerial incompetence with a current ratio of over twelve!

So what do we think of the current $175M market cap valuation? The current fundamentals suggest they still have a lot of growing to do just to justify that number. 3.6x TTM sales, unprofitable on both the Net income and EBITDA lines and delivering a negative 4% ROE. That doesn’t exactly scream undervalued. Even if one were generous and extrapolated this record quarter to annual numbers, you would still get 3.5x TTM sales and a P/E of over 18.

Therefore I feel they still have a lot of work left to do before they can think about challenging new highs any time soon, a number that they are 50% off currently. Unfortunately I was unable to listen to yesterday’s call to see if any of my concerns were addressed and the replay is not yet available.

Regardless, this set of financials is definitely upgrade worthy. They have a four star P&L, but that has to be reduced significantly due to their cash flow issues.

3.5 stars.

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Disclaimer:

My intent is for my reviews to be a bolt on to due diligence that you have already completed. I receive dozens of review requests a week, therefore my own DD may be great or none whatsoever. Unless otherwise stated or implied, my opinions are on the financial performance of the company based on their most recent filings. I conduct these reviews to assist other retail investors whose research skills are limited when it comes to reviewing financial statements. I do not accept compensation of any kind from companies I review.

Wolf FINS Reviews are intended to be informational and are based on personal opinion. They are not intended to be financial advice, and all readers are encouraged to perform their own due diligence prior to their investment decisions, including discussions with their investment advisor.

If you’re familiar with my work, then you are likely aware that PesoRama has not exactly been a favourite of mine. They received a one star review in my latest, and most recently identified them as a Danger Zone stock leading into these financials in my June What’s Wolf Watching piece on June 16th, telling investors to “save their Pesos”. The stock is down 18.5% since, and 34% in the past month.

Longer term investors have fared better as the stock is up 231% in the past year. The average daily volume increase has been very noticeable recently also, almost suspiciously since their April 23rd raise. That was done at 35 cents and yet the stock doubled from 40 to 80 cents in the next thirty days. Hard to explain.

Over the past year, PesoRama has expanded by about a dozen locations throughout Mexico. Post financials, the company has tried to clean up some of it’s debt problems which we’ll get into later.

So, should you continue to keep your pesos in your pocket when it comes to this Mexican dollar store chain? Let’s find out.

Balance Sheet:

As of April 30th, an important distinction given the post financials activity, PESO maintained a very unattractive current ratio and liquidity situation. The current ratio stood at .64 and consisted of $10.2M in cash, $10.8M worth of inventory and $2.8M in other short term assets against $37.1M in short term liabilities. Those liabilities included $19.8M of a revolving loan with Third Eye Capital which I wrote about extensively in my last review. Most recently this loan came with a 18.5% minimum interest rate, 15M warrants at 14 cents, closing fees, due diligence fees, and monitoring and standby fees. It was one of the worst loan situations I’ve ever reviewed. Only the only from VSBLTY with high interest rates from insiders tops it.

But as of a couple of weeks ago, the company closed a convertible debentures financing which raised just under $20M (net after $1.05M in commissions). These three year debentures carry an interest rate of 9% and will convert at 91 cents in mid June of 2029. Those funds were used to extinguish the Third Eye Blind debt.

So their balance sheet will certainly look better than it currently does in September when they report their Q2. Even with that $19.8M loan removed, liquidity is still concerning with their cash balance still about $7M shy of their accounts payable and lease costs for the next twelve months. This is of course after a $10M raise back in April.

If they’re operational cash flow positive, it would alleviate some of those concerns.

Cash Flow:

Alas they are not OCF positive, burning $415k in their first quarter. This compares with generating $700k of cash flow in the comparable quarter. Prior to working capital adjustments it’s about $500k worse, only looking as good as it is due to $3.5M in accounts payable growth during the quarter. We’ll touch on this again later.

During Q1 they spent $1.8M in investing activities - the majority of which was utilized on capex for leasehold improvements for new locations.

They received $10.3M into the treasury from the 35 cent raise and warrant exercises in the quarter, and made $950k of interest payments.

Overall, their cash position more than doubled during the quarter to $10.2M from the $4.85M they started with.

Share Capital:

• 202.4M shares outstanding. 18% dilution in Q1 alone and 111% dilution in the past twelve months

• 84.4M warrants outstanding - ALL ITM.

• 20M options - 13.5M ITM with another 2M at 55 cents (stock currently at 53)

• $21M new convertible debentures post financials converting at 91 cents in June of 2029. (now publicly trading under PESO.DB)

• 3.5% insider ownership with a mix of insider buying and selling in the past twelve months

• Fully diluted float just including ITM equities is 300.3M shares with an implied market cap of $159M

Income Statement:

Revenue increased by 36% in Q1 to $7.5M compared with $5.5M last year. Gross margin declined by 240 basis points from 35.1% to 32.7%. Therefore on 36% more revenue, PESO generated just 27% more gross profit dollars.

Cash burning expenses jumped by 44%, more than both their revenue and gross profit increases. Non cash burning operating expenses (Depreciation and Amortization) increased by 58%. This is a bad combination resulting in their operating losses increasing by 76% ($2.41M vs $1.37M). Tack on $1.44M in financing costs and that takes their net losses to $3.86M vs $3.1M. Tack on another $455k in forex losses and their comprehensive losses increased to $4.31M vs $3.03M.

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Summary:

Sell more, lose more is far from optimal and that is what we have here. Other than the revenue increase, almost every comparable metric was worse in Q1 of 2027 compared to last year. You cannot have the rate of your operating costs exceed that of your gross profit, and theirs was off significantly, and in most of their major spending buckets.

I also never like to see related party expenses rise like this, with the majority of the increase from using legal services with ties to one of their directors.

In fairness to PESO, they did not get a substantial revenue benefit from the four new locations in Q1. All four opened in the back half with the most recent opening on the final day in the quarter.

But by the same token, they ended Q1 of 2026 with 25 locations and had 31 open at the beginning of this years Q1. Even without those four new Q1 stores, this revenue figure might appear to be light. Adding to this potential theory is the company did not announce same store sales figures like they usually do. They reported traffic was up 19%, but no mention of SSS. This omission feels concerning.

The biggest positive to occur this calendar year was ridding themselves of that awful debt, but it was replaced with new debt at 9% over the next three years with further dilution tied to the end of the debentures term. Even when considering the post financial revisions to their balance sheet, their liquidity still looks poor. They are burning cash on a quarterly basis and spending capital on leasehold improvement for their new store openings. While we will get a better look in three months, right now it’s hard to imagine them lasting their 2027 fiscal year without the need to raise capital yet again or increase debt.

This is after 111% dilutive measures in the past year and 100M in ITM warrants and options set to explode this float even further.

Another concerning portion of PesoRama’s financials is one I haven’t even discussed yet. Legal Claims.

Nine legal claims have been filed against PesoRama which spans nearly three pages within their most recent MD&A. While three of these claims date prior to July of 2022, the other six appear to be from the last twelve months. While legal claims do happen from time to time against public companies, SIX looks to be more than a coincidence.

Former staff, the former CEO and CFO, a freight provider, consultants, software provider, and even their former attorney have issued claims against the company. Many of these claims are for failure to make payments for services allegedly rendered. Remeber when I mentioned the significant growth in accounts payable? Are there any more shoes (or claims) to drop here? You have to wonder.

They have already recognized over $1M in provisions expecting to lose or partially lose some of these cases, but the final amounts could be much higher.

In short, PesoRama is one ugly baby. Speaking of short, it’s getting awfully tempting to play the other side at this valuation. PESO was under a $17M market cap one year ago. The implied market cap is nearly ten times that, with likely further dilutionary measures in the months ahead.

That’s 5.3 P/S while being very unprofitable on even the EBITDA and AEBITDA lines.

Ugly baby. Maintaining the one star while resisting the temptation for a downgrade.

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Disclaimer:

My intent is for my reviews to be a bolt on to due diligence that you have already completed. I receive dozens of review requests a week, therefore my own DD may be great or none whatsoever. Unless otherwise stated or implied, my opinions are on the financial performance of the company based on their most recent filings. I conduct these reviews to assist other retail investors whose research skills are limited when it comes to reviewing financial statements. I do not accept compensation of any kind from companies I review.

Wolf FINS Reviews are intended to be informational and are based on personal opinion. They are not intended to be financial advice, and all readers are encouraged to perform their own due diligence prior to their investment decisions, including discussions with their investment advisor.

This will be my first look and review of Xtract One in what appears to be some heavy interest out of the Wolf Den discord.

Xtract One Technologies is a Toronto-based company that develops and commercializes AI-powered weapons detection and threat detection gateway solutions. They also trade on the big boy TSX exchange and currently trade at just under a $150M market cap.

They released their Q3 just over two weeks ago to some fanfare (at least for a short spell), which sent the stock up as much as 58% during the week, but has since given back 22% from their June 11th post financials run. Longer term holders are likely satisfied with their investment as XTRA is up 64% over the past year. On the other hand, if you purchased shares at their 52 week high back in October, you’re down 40%. Welcome to microcaps.

The growth story is impressive with $24M of revenue on a TTM basis after doing just $4.1M in their 2023 fiscal year. The rest of their fundamentals are much less impressive however. They are still an operational cash burning organization with $6.4M of burn (TTM), and trade at over 6.5x P/S and are still heavily unprofitable on the net income and EBITDA lines.

So, in the words of Total, “What the Dealio” with Xtract One?

As with all initial coverage stocks, this deep dive will be available to paid subscribers with a free release scheduled for July 6th.

Balance Sheet:

Sixty percent of Xtract One’s current liabilities, and two thirds of their total liabilities are made up of deferred revenue. I like to removed deferred’s from my ratio calculations and when this is done, the company has a very impressive current ratio of 6.4. It’s more than ok with deferred revenue left in as well.

At the end of April the company had $15.6M of cash on hand, $4.3M of receivables, $4.2M worth of inventory and $2.9M of other short term assets against $4.2M of liability commitments over the next twelve months. Xtract is debt free.

Receivables have tripled in their last nine months and they do not provide an aging report, although it is notable they have not made any provisions for write-offs at this stage.

Solid start.

Cash Flow:

Through three quarters, XTRA has burned through $5.4M in operational cash flow (OCF), only a slight improvement over the $5.6M of operational burn experienced at this time last year.

That might not tell the whole story. As you can see below, prior to working capital adjustments there was a 72% improvement in their burn rate. Their A/R growth and inventory investments have inflated their burn YoY. They still of course have to collect those receivables and have positive sell through of their inventory moving forward, but I’m going to suggest their OCF is better than it appears here.

Even at the $5.4M of operational burn, they do have the balance sheet to withstand future similar burn rates and likely have a cash runway of at least two years at these levels.

The reason their balance sheet looks as good as it does is due to the $11.5M raised in November of last year at 75 cents. Investors in that round are down by 21%. They also raised $2.6M through warrants. Xtract has not spent a penny within investing activities, highly unusual through nine months.

Overall their cash position is 90% greater then where they began the year.

Share Capital:

• 259.9M shares outstanding, 19% dilution over the past twelve months

• A whopping 76.6M warrants outstanding. 16.9M are currently ITM with the most recently issued 8.6M well out of it. But another 51M are within a nickel all expiring with in the next two years.

• 17M options with 5.1M ITM and another 6.1M within a dime.

• Very small insider ownership of 0.52% with 1% institutional ownership. The largest shareholder is MSG Sports with a 13.5% stake. (per SimplyWallSt)

• Small insider purchases in May and insiders have been exercising options at or just out of the money

Income Statement:

Revenue in the quarter was outstanding at $10.26M, just shy of 3x of the $3.47M they generated in the comparable quarter. Xtract delivers very healthy margins - 60.8% in Q3 which is 380 basis points higher than they delivered last year. That in turn generated 215% more gross profit dollars.

In addition, they also managed their operating costs efficiently, only growing by 29% on three times the revenue.

Even though there is a slight net loss of $245k in the quarter, that compares to a $3.08M loss in Q3 of last year. That type of revenue and margin improvement, along with impressive operating expense controls is good enough to award them the Wolf Trifecta for the quarter.

YTD metrics are pretty good as well

• Revenue up by 97% to $20.65M vs $10.51

• Margin of 58.3%, down over 500 basis points from 63.7% generating 85% more gross profit dollars

• Expenses up 16% - excellent conversion on 85% more GP

• Net loss of $5.5M vs $8.4M, a 34% reduction

They miss out on the Wolf Trifecta due to the margin erosion, but their metrics are headed in the right direction.

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Summary:

So the balance sheet is excellent, the P&L improvements in this latest quarter are very good and while the cash flow section doesn’t look great in comparison to last year, it does show some signs of improvement too - they were in fact cash flow neutral in Q3

This float on the other hand leaves a lot to be desired. Including warrants that are within a nickel and options within a dime, we’re looking at a float of nearly 325M shares, an additional 24% dilution from where we stand and an implied market cap of over $191M. That takes their P/S valuation to 8x.

With nearly 20M warrants expiring in April of next year and another 30M a year afterwards around today’s share price will create a lot of overhang concerns.

Based on the above, you’re really going to have to love the due diligence. To begin I will attach the company’s investor deck below:

The Madison Square Garden relationship definitely adds some credibility to the bull case, their largest shareholder by far and they also hold millions more in warrants. In addition to traditional stadium security, the company is expanding into schools and healthcare sectors.

Those expansion markets aren’t just aspirations as they have been able to land health care centers on both sides of the border in the last few months.

They have also been able to land the PNE, multiple schools, and the British Museum (which I happened to visit last month), so they have been able to expand their reach beyond their initial offerings of stadiums, casinos and theatres. It is also encouraging that they have been able to expand across North America, showing tariff resiliency and across the pond as well.

None of those news releases announcing new contracts have any dollars attached to them unfortunately. They do have a current backlog of about $45M. That is up about 26% so therefore it appears they will be quite lumpy revenue producers and I would not expect the next couple of quarters to triple like their recent Q3.

I’m intrigued but I am leery of this valuation. Their closest publicly traded competitor appears to be Evolv Technologies ($EVLV - Nasdaq). Evolv’s revenue is about 10x larger, and so is their market cap, therefore you could argue it’s trading appropriately compared to peers (or peer).

Technically, I don’t love this chart and the stock is down 3% and appears to be losing 58 cent support with a 200MA test likely in the near future.

It does move near the top of my watchlist, but only a mid 2.75 star opening review for the time being. At 47 - 49 cents, I could be a buyer.

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Disclaimer:

My intent is for my reviews to be a bolt on to due diligence that you have already completed. I receive dozens of review requests a week, therefore my own DD may be great or none whatsoever. Unless otherwise stated or implied, my opinions are on the financial performance of the company based on their most recent filings. I conduct these reviews to assist other retail investors whose research skills are limited when it comes to reviewing financial statements. I do not accept compensation of any kind from companies I review.

Wolf FINS Reviews are intended to be informational and are based on personal opinion. They are not intended to be financial advice, and all readers are encouraged to perform their own due diligence prior to their investment decisions, including discussions with their investment advisor.

This will be my initial look at the company via request from the Wolf Den discord. YES is a cleantech development and energy transition company, developing biocarbon and renewable energy solutions.

This $44M market cap company has been at it a while, trading on the Venture since 2014, and well off of their five year high of $1.03 back in November of 2021, 71% lower.

An initial look at their financials tells me the due diligence story had better be good as the company has lost $1.82 for every $1 in revenue they have earned this year and are trading at nearly 16x their TTM revenue.

Let’s don my Simon Cowell hat and determine whether Char Technologies will be a yes, or a no from me.

(Free release scheduled for July 1)

​Balance Sheet:

The balance sheet is mediocre at best with a current ratio of 1.06 that consists of just $782k in cash, $2.5M in accounts receivable and $292k in prepaids overtop of $3.38M in current liabilities. Not only is their overall balance sheet lackluster, but so is their liquidity with their combined cash plus A/R situation not meeting their 12 month liability commitments.

Their accounts receivables throw up an initial red flag for me.

The company has only done $1.3M in revenue in the last six months, yet their trade receivables are 152% of their YTD sales. When a company has receivables that show potential red flags and does not provide any type of aging report, it makes it look more concerning.

Worse yet is when you see loans being extended to their CEO and other related parties. This $340k loan was also done at a very attractive 2.45% interest rate. I did not bother to go back and find the origin of the loan, but as of September 2024, the balance was $307k suggesting no recent payments have been made. It’s also a payable on demand loan with no firm date. There is never any good reason for a microcap company trading publicly to utilize the treasury in this manner in this writers opinion.

Just prior to quarter end, and around the same time as their private placement, they loaned Bioveld $2.5M at 13.5% interest. Then post financials the company entered an agreement to add $3.5M (CAD) of debt at 12.5% with you may have guessed, Bioveld Canada. This was done to fund a pellet production facility out of Quebec for $1M USD. While this will overall improve the company’s liquidity situation, it’s bad business when you take on loans of 12.5% while giving out loans to your CEO at under 2.5%. That loan also came with potential future dilutive measures with 2M warrants being given at $0.35.

This all feels like something I do not want any part of.

Cash Flow:

Based on the above comments on their balance sheet and receivables, it’s no surprise to see that the company has burned through $2.06M of cash via operations through their first six months. This is however a 28% improvement over the $2.87M they burned at this stage last year.

As previously stated, they loaned their related part $2.25M and received $3.85 (net) from their March raise and another $900k from warrant exercises.

Overall their cash position has increased by 72% from the start of the year.

Share Capital:

• As of March 31, 150.7M shares outstanding, 27% dilution over the past year and 49% over the past eighteen months

• 24.8M warrants outstanding, all just out of the money between 30 and 35 cents

• 8.5M options, 1.3M ITM

• 3.55M RSU’s and approx 1M SAR’s. I personally do not like RSU plans for companies that burn cash, and Char has never had a positive operational cash flow year since their first year trading in 2014

• 21% insider ownership, 7% held by Bioveld Canada

• No transaction in the open market over the past year

Income Statement:

In the second quarter, Char delivered $700k in revenue, down 3.7% from the comparable quarter. Gross profit on the other hand was up by over 1700 basis points from 32.1% to 49.2%, therefore even on declining revenue, they still delivered 24% more gross profit dollars.

Total expenses came down dramatically by over 21% mainly through big decreases in professional fees (59%) and office expenses (43%). Despite those margin and operational expense improvements, the company still had a $1.32M operating loss.

YES has also taken a 16.5% book loss on their JV investment in Thorold LP. In total that investment is down 23% since entering into the joint venture. That below the line loss almost offsets the grant income received of $339k in the quarter. Overall their net loss was $1.36M, a slight 12% improvement over the $1.55M loss suffered last year.

YTD the metrics are as follows:

• $1.3M in revenue, up 15% through six months

• Gross margin of 48% compared to just 29.2% last year generating 90% more gross profit dollars.

• $2.74M of operational expenses, 22% less than last year but over 4x their GP dollars.

• Net losses of $2.38M vs $3.21M last year

  ---

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Summary:

Overall, this looks very messy, and Wolf doesn’t do messy. Before we get to the messy stuff, let’s look at what would be a break even point for Char Technologies.

YTD they have delivered $1.3M in revenue. To break even on the same level of spending and with their current gross margin, they would have needed to have $4.88M in revenue or close to a $10M run rate.

Their recent acquisition of $1M in biocarbon assets is vague but suggests it could deliver 12,500 tonnes of biocarbon each year over five years. Estimates at the high end would deliver a total of $20M, or $4M per year. For that they would also have to provide royalties and the already mentioned 2M warrants. Even at the high end this deal would not get them anywhere near their current break even point, all the while burning over $1M in operational cash flow per quarter on a currently suspect balance sheet.

Then you get into the messy stuff in what appears to be a very incestuous relationship with Bioveld Canada with loans going both ways and involved in a joint venture which has lost 23% of it’s value in the first nine months. Then you get into all of the related party transactions. Secretarial services, consulting contracts and to top it off loans to the CEO at very attractive rates with no end date.

I’m getting Pyrogenesis vibes, and that isn’t a compliment. In the words of Simon Cowell, “it’s a no from me”. I could have dug in more, but I’m afraid of what I might have found.

To top it all off, it trades at very insane valuation metrics.

One star.

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Disclaimer:

My intent is for my reviews to be a bolt on to due diligence that you have already completed. I receive dozens of review requests a week, therefore my own DD may be great or none whatsoever. Unless otherwise stated or implied, my opinions are on the financial performance of the company based on their most recent filings. I conduct these reviews to assist other retail investors whose research skills are limited when it comes to reviewing financial statements. I do not accept compensation of any kind from company’s I review.

Wolf FINS Reviews are intended to be informational and are based on personal opinion. They are not intended to be financial advice, and all readers are encouraged to perform their own due diligence prior to their investment decisions, including discussions with their investment advisor.

Baylin has been receiving some chatter within the Wolf Den discord as of late. Not by me, but requests have come in for a review so here we sit. I tend to review a lot of companies and sometimes I forget that I’ve covered them previously, as is the case with Baylin.

I think this image speaks for itself as to how it went the last time.

The stock is down about 50% in the eighteen months since that review, but it is actually up 20% over the past twelve, trading in the 22 to 30 cent range for most of that time.

Not today doesn’t mean forever. The company has been on the small cap conference trail promoting the company of late. That timing is not coincidental - they are coming off of a large acquisition announced a couple of weeks after their recent Q1 in mid May.

Therefore this review will need to dig a little deeper than just their recent financials.

Not today but….

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There is the odd occasion when I sit down to write a review and think to myself, “Is anyone going to give a shit about this one?” This is one of those times.

Not a great lede for a 2026 Wolf Pick, but after some initial fan fare after making it a selection in mid December sending the stock up by 130% over the next two weeks, there hasn’t been very much to get excited about since. That includes a mediocre 2.75 star review back at the end of January for their Q3. The stock has now come back to reality sitting up just 3.5% from the pick, well off the average of 42%.

Now that I’ve adequately lubed up your sensory glands with anticipation, let’s get into the review.

Balance Sheet:

Pudo finds themself in a similar position as they did at the end of their third quarter. A current ratio of 1.9, but light on cash with receivables making up 70% of their current assets. Since these are annual financials for a stock on the junior exchange we must also account for the fact these numbers are 3.5 months old - the end of February in this case and the first quarter of 2027 ended in May.

So as of Feb 28th, Pudo had $242k in cash, $905k in receivables and $142k in other short term assets against just $675k in short term liabilities. The company also maintains no debt OR long term liabilities.

Their aging report was a little worrisome last quarter but has improved slightly with only very minor amount over 60 days and the total amount is down by $180k over their last three months.

Cash Flow:

The bad news is Pudo burned through $505k in operational cash flow during their fiscal year. The slightly less bad news is they only burned $7k in Q4 after their worst quarter of the year in Q3 when the burn rate was $300k. 80% of that burn was due to working capital adjustments, mainly from the increase in accounts receivables. Therefore it isn’t as bad as it looks, but it’s still far from good.

They invested $35k and had a raise of $101k during the year. Sadly, overall they burned through two thirds of the cash on hand they had to begin the year.

With less than a quarter million in cash to end the year, this burn rate is unsustainable, and will need a big turnaround in the first half of the year to avoid a raise of capital.

Share Capital:

• 33.3M shares outstanding, 22% dilution over the past year due to a raise and debt settlements

• 3.6M options outstanding, with 350k expiring unexercised in Q4. 1.7M are ITM but do not expire until Jan 2030. With the treasury being light, will insiders early exercise some of these options with the stock price currently double the $0.14 option price?

• Approximately 50% insider ownership with the top two shareholders being private companies - Palm Holding and Cardinal Couriers

• Insiders were major participants in their March 2025 raise and debt settlements

• No Sedi filings since March of 2025

Income Statement:

A relatively successful top line performance on the year with a 35% increase in revenue to $5.6M and that came with a slight drop in margin of 100 basis points to 33.4%. Gross profit dollars as a result grew by 31%.

Unfortunately the company did not gain any operational leverage last year as Admin expenses rose by 52%, a significantly higher rate than their revenue or GP dollar gains. Their top two expense buckets, payroll and G&A rose by 71% and 30% respectively. Salaries and benefits to related parties grew by 3.5x. Really?

This all results in a quadrupling of their losses from a year ago, $332k vs $82k.

Q4 results were not more encouraging. Revenues came in at $1.38M, down by 5.6% and the worst performing top line quarter of their last five. While margin was above their annual total at 35.5%, it was off last year by 450 basis points, leaving gross profit dollars off by 14%. To add insult to injury, admin expenses grew by 63% leading to a reversal of profitability of $167k last year to a loss of $85k this year.

This is a clear definition of a reverse Wolf Trifecta. This makes Wolf unhappy.

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Summary:

There is no putting lipstick on this pig of a quarter and a terrible back half of the year after what was a rather encouraging first half.

The thesis of the Wolf Pick was a growth story that could turn them into an acquisition target, as has happened with their competitors. Management is aligned with this thinking as well - they have a goal of moving on and cashing out.

Unfortunately that thesis starts to fall apart when you stop growing, have margin slippage and spend a shit ton more on in expenses. The comments in their deck for Q1 are not exactly encouraging either, particularly given their cash position and risk of burn, setting up a potential need for a raise.

They go back into the watchlist pile here as we see where their Los Angeles expansion takes them. Q2 may be the tell if this growth story can still remain intact.

Downgrading from 2.75 to 2.0. But hey, at least I’m not deleting the channel like some other discords have with their annual picks.

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Disclaimer:

My intent is for my reviews to be a bolt on to due diligence that you have already completed. I receive dozens of review requests a week, therefore my own DD may be great or none whatsoever. Unless otherwise stated or implied, my opinions are on the financial performance of the company based on their most recent filings. I conduct these reviews to assist other retail investors whose research skills are limited when it comes to reviewing financial statements. I do not accept compensation of any kind from companies I review.

Wolf FINS Reviews are intended to be informational and are based on personal opinion. They are not intended to be financial advice, and all readers are encouraged to perform their own due diligence prior to their investment decisions, including discussions with their investment advisor.

Well it took about three years worth of reviews for someone to finally tell me that I have been using the wrong corporate logo for this 2025 Wolf Pick. Awkward.

Minutes ago ADF Group release their first quarter of 2026, and the highlights look quite impressive.

Four months after my 2025 Wolf Pick came Trump’s “Liberation Day” tariffs sending the stock market reeling and to a much larger extent Canadian companies dealing with aluminum and steel. Due to some excellent managerial decisions a year ago and their deft acquisition of LAR group last September, the company has clawed all the way back and then some with the share price appreciating by over 52% since they released their Q1 a year ago.

A year ago tomorrow I ended a tough review with this.

Guess what, they’re back.

I did not have a chance to review their annuals presented in mid April, my last coming in December after their Q3 which received 3.25 stars. The highlights in the news release suggest upgrade potential. Let’s do the work to find out.

Balance Sheet:

We begin with a solid current ratio of 2.2 that consists of $62.1M in cash, $80.5M in receivables, $18.6M worth of inventory and $81M in other short term assets overtop of $93.2M in liabilities due over the next twelve months. Liquidity is pretty good as well with a quick ratio of 1.5 that includes their cash + A/R against their one year commitments.

I’ve mentioned my disappointment in only disclosing an aging report on an annual basis, but the good news is their A/R is down from the last time we looked at it in December while revenue has increased significantly.

DRX has $37.5M of debt as of these statement, about $1M less than our last review. Post financials the company added $12.5M worth of debt through the Liberal government’s Strategic Response Fund. 50% of which comes in the form of a grant and the other half interest free over eight years beginning in 2029. You don’t turn down this type of opportunity. Free money Homey.

Cash Flow:

ADF Group had $10.1M of operational cash flow in the quarter, which on the surface may look like a huge miss compared to the $25.3M they generated in the comparable quarter. I’m here to tell you it’s not, as there is a $28M reversal in working capital changes from last year. Prior to working capital adjustments, cash flow from operations totaled $20.2M vs $7.1M.

The company made $8.9M worth of investments in the quarter and paid down nearly $1.8M of debt including interest payments. Overall, they maintained a very similar cash position as they began their fiscal year worth.

Share Capital:

• 28.6M shares outstanding made up of 16.5M subordinate and 12.1M multiple voting shares

• 1.05M subordinate shares repurchased last year. NCIB not renewed from December.

• 450k shares issued in Sept as part of the LAR acquisition

• 51% ownership between insiders, institutions and private companies

Income Statement:

Revenues exploded out of the gate with $99.3M compared to just $55.5M, an increase of 78%. Not only is that exciting from a YoY perspective, but it is also their best top line performance of the last eight quarters, and at a time when they are facing significant tariff headwinds. Equally impressive was their margin which rose by 220 basis points from 22% to 24.2%, nearly doubling their gross margin dollars which increased by 97%.

They did not however have great conversion within their operational expenses as Selling and Admin expenses rose by 125%, higher than the rate of both their revenue and GP gains. They also came in at 7.7% of revenue vs 6.1%. Acquisition costs related to LAR and SBC costs were the cause. Therefore they miss out on a Wolf Trifecta in Q1.

But even after paying 49% additional income taxes in the quarter, they were still able to deliver $12M of net income, 37% more than a year ago. This was also achieved while experiencing a $2.6M bogey to last year in foreign exchange gains.

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Summary:

A pretty fantastic quarter out of the gate, but you have to feel that management sandbagged here as their commentary in April after their somewhat disappointing Q4 didn’t sound this bullish. Post “Liberation Day” the company has become much more conservative on their conference calls, and quite frankly who the hell can blame them. I don’t think Trump knows what he is going to do on a day to day basis, so how can they?

I don’t expect the company’s tone to change much in today’s call so I won’t be waiting for it to complete the review.

What the company did say last time which has changed should be the impact of capex in their fiscal 2027. That is due to the $12.5M in funding from the feds, which essential comes in the form of a half grant, and half interest free loan for which payments will occur in 2029-2037. We are still about one year away from that capex to pay dividends with the completion expected late Q1 of their fiscal 2028 (May/June of 2027).

While I expect their quarterly revenue numbers to be lumpy, their short-mid term outlook is very positive as evidenced by their backlog. That number is up by 95% from one year ago and 15% better than announced after their Q4. That does not include a $200M potential extension with their energy sector customer in Quebec. With the government’s aggressive infrastructure plans, the company is also positioned very well to take advantage of those opportunities.

Better yet, that backlog is 74% Canadian. In Q1 of last year, Canadian revenues only amounted to 13% of their business (30% this quarter). This really shows the value of the LAR acquisition and managements ability to diversify and manage the business under very challenging conditions.

With TTM revenue now at $303M and Net Income at $30M, the company now trades at sub 1.0 P/S, a 9.9 P/E and about 5.5 EV/EBITDA ratio. This easily looks to have a 50% upside over the next twelve months.

Upgrade to 3.75 stars and likely poised for another shortly. They are back in a big way.

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My intent is for my reviews to be a bolt on to due diligence that you have already completed. I receive dozens of review requests a week, therefore my own DD may be great or none whatsoever. Unless otherwise stated or implied, my opinions are on the financial performance of the company based on their most recent filings. I conduct these reviews to assist other retail investors whose research skills are limited when it comes to reviewing financial statements. I do not accept compensation of any kind from companies I review.

Wolf FINS Reviews are intended to be informational and are based on personal opinion. They are not intended to be financial advice, and all readers are encouraged to perform their own due diligence prior to their investment decisions, including discussions with their investment advisor.

What a great story D-Box has been over the last five quarters. In February of last year, I gave the company my Wolf Seal of Approval, my first in what would become a new way of announcing my mid-year Wolf Picks. The stock traded at $0.145 then and yesterday leading into these financials, the stock closed at $0.90 for a 521% return.

My conviction has only grown since then with multiple buy zones along the way, including in my recent May What’s Wolf Watching article. Within that piece I noted that DBO would be up against a very soft comp setting them up for a pretty good top and bottom line beat, also noting I would be a buyer at any dip into the 80-85 cent area. That opportunity arose last week touching the bottom of that buy zone at 80 cents and I and others within the Wolf Den Discord acted upon it.

You may have noticed many of my reviews of late have been a bit of a bummer with many of those covered missing expectations. Therefore I was very much looking forward to after hours yesterday. The highlights look excellent, supporting my thesis of a great quarter to close out the year on both ends of the P&L. Revenue was up 70% with net income up by 162%.

Let’s get into the weeds to ensure we do not come across any landmines. Grab yourself a comfy D-Box seat, and come along for a ride to see if we can determine where D-Box goes next.

* Free subscriber release on June 9th.

Balance Sheet:

DBO boasts a very clean and healthy balance sheet. They have a current ratio of over 4.1 consisting of $17.6M in cash, $8.4M in receivables, $6.2M worth of inventory and $1M in other short term assets. All of that is overtop of just $8M in short term liability commitments (deferred revenue removed).

They are very liquid with just their current cash position covering their next year’s financial commitments by a factor of more than 2x.

D-Box’s A/R appears healthy but I will note that they do not provide a traditional aging report. In note 17.2 they do add that three clients make up 43% of all money’s owed, and receivables over 90 days stood at 8%. About half of that amount ($324k) is booked as an allowance for doubtful accounts. The company has only written off $68k in the last two year.

They are also virtually debt free with a small Canada Economic Development loan at 4% with $323k remaining and will be extinguished by December of 2027.

This is about as solid of a start that one could hope for.

Cash Flow:

DBO generated $12M of operational cash flow during their fiscal 2026, 61% more than they generated a year ago. Q4, due to working capital adjustments came in at a similar $2M of OCF on a YoY basis.

Through the year they invested $1M in assets, paid down $900k of debt and had $100k flow into the treasury from exercised options.

Overall the company improved their cash position by 125% from the start of their fiscal year.

A short cash flow section is typically a good cash flow section. That is the case here.

Share Capital:

• 222.8M shares outstanding with just 0.3% dilution over the past year

• NCIB to buy back up to 10% of shares announced a week before year end, with 173k re-purchased and cancelled. Approximately 580k bought back and scheduled to be cancelled since year end

• 13M all ITM options outstanding under the company’s 10% plan - none expire for another 2.5 years

• 425k SAR’s (Share Appreciation Rights) and 1.4M RSU’s

• 6% insider ownership with 16% owned by institutions. Top five per SimplyWallSt shown below

  

• Mixture of insider buying and selling with the audit chair and largest insider, reducing his holdings by 38% over the past year

Income Statement:

Total revenues for 2026 totaled $57.6M, up 35% over last year. Gross margin improved on the year by 60 basis points to 52.8% and gross profit dollars improved by 36%.

Controllable operating expenses (forex losses removed) only grew by 8.3% while generating 35% more revenue showing exceptional operating leverage. This included a reduction in marketing spend by 11.7%. Admin and R&D costs rose by 21% and 20% respectively.

On the year, that awards them the Wolf Trifecta, for generating significant revenue wins, improving margin, and excellent expense control.

Wolf Trifecta’s add up to improvements in profitability. After also reducing financing expenses by 98% YoY, profit before income tax nearly tripled from $3.88M to $11.36M.

D-Box also had the luxury of carrying forward some tax losses in 2026, adding an additional $6.1M to the net income line and increasing their total profitability by over 350% YoY.

On a YoY comparison basis, Q4 revenues were the best performing quarter of 2026, rising to $14.65M, up 70%. That did however come at the expense of some gross margin with the rate eroding by nearly 600 basis points to 48.3%, and the only quarter of the year to slip under the 50% mark.

That was driven by revenue mix with much softer Sim revenue which carries higher margins. Theatrical revenue on the other hand was up by nearly 8x, but it also carries a lower rate. Despite this, gross profit dollars were still up by over 50% in Q4.

While not as strong as the total year, DBO still converted well on operating expenses with their three main buckets increasing by 31%, R&D spending rose by 12%, Sales & Marketing costs rose by 21%, and due to $500k of additional SBC costs, Admin expenses rose by 57%.

That all combined to drive $1.89M in net income vs $0.72M last year and increase of 162%. They fall shy of a Wolf Trifecta in the quarter, but more than made up for it during the rest of the year.

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Summary:

Overall this was a very transformational year or past five quarters for the company. They increased their net number of screens by 18% during the year while growing their royalty revenue by 36% and theatrical system sales by 133%.

Their sim racing and sim training businesses were both down by double digits and still make up 28% of total revenues. While this segment will be much lumpier than the others, it’s still large enough a factor to sway quarterly results.

But the future of DBO will rest with their theatrical business driving installs and the very important royalty revenue that generates going forward. With 66 net new screens added in Q4, that sets up their royalty revenues very well for next few quarters. They are also only present in less than 2% of North American screens and under 1% globally, giving them huge potential for the next number of years. Even on a comp basis, theatres are expecting solid growth over the next year with greater emphasis on premium experiences which sets D-Box up well.

So how do we price D-Box, particularly considering the $6M+ birdie in income taxes this year?

At $0.90, DBO sits at a $200M market cap with their valuation ratios as follows - an 11.5 P/E, 13x Adjusted EBITDA and 16.6x Cash flow. It’s unusual to see a P/E ratio lower than the others and that is due to the tax benefits experienced in 2026.

This past year won’t be the only time the company recognizes some deferred tax benefits as they have $6.4M and additional federal and provincial R&D expenditures to recognize for years to come.

Even with that I don’t think the 11.5 P/E is a great metric here. Without the tax benefits in ‘26 their P/E would stand at 17.6. That feels fair for what they are doing today, and then investors need to price in all of that white space potential. Can they get 2% global screen penetration in the next few years? That would be 4,000 screens and they have 1,200 today. That would be 3.5x their performance today. Feels doable.

Is DBO dollar bound today? I think they should be. Let’s see what transpires. Maintaining 4.5 stars.

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Disclaimer:

My intent is for my reviews to be a bolt on to due diligence that you have already completed. I receive dozens of review requests a week, therefore my own DD may be great or none whatsoever. Unless otherwise stated or implied, my opinions are on the financial performance of the company based on their most recent filings. I conduct these reviews to assist other retail investors whose research skills are limited when it comes to reviewing financial statements. I do not accept compensation of any kind from company’s I review.

Wolf FINS Reviews are intended to be informational and are based on personal opinion. They are not intended to be financial advice, and all readers are encouraged to perform their own due diligence prior to their investment decisions, including discussions with their investment advisor.

I’m making the assumption before we dig into these Q1 financials that it will be brief since I recently covered them in my Mother of All Reviews for their Q4.

PCRX is part of the batch of my 2026 Wolf Picks, currently up 20%, peaking at 29% recently after announcing their big acquisition plans at the end of April.

Let’s check in on their Q1 progress.

Balance Sheet:

The balance sheet looks incredible with a current ratio of 9.4 consisting of $23.4M in cash, $1.2M in A/R, $3.1M worth of inventory and $93k in prepaids overtop of just $2.9M in liabilities due over their next twelve months.

But that cash will not be in the treasury for very long with their announced plans to acquire eight pharmacies in Eastern Canada for an announced price tag of $24.2M. In that same announcement they also revealed four other pharmacies under LOI. Just last week one of those letters of intent turned into a definitive agreement to acquire an Ontario location for $8.2M.

Doing the simple math (24.2+8.2) is $32.4M. They ended Q1 $9M shy of that figure in order to close those two deals. Where will that shortfall come from?

Pharmacorp’s A/R looks healthy with 84% current and no other issues arising from their balance sheet that look problematic.

PCRX has $3.2M of debt, all borrowed against a $20.5M credit facility which has a $10M accordion feature at a monthly variable CORRA rate (currently 2.25%). I think that leads one to believe where those additional funds are going to come from - tapping much deeper into this credit facility.

Cash Flow:

Pharmacorp burned $2.67M of operational cash flow during Q1, but I wouldn’t get concerned with that number as the company had $3.2M of negative impact from working capital adjustments, almost all arising from paying down their A/P by more than half. It sat at $5.2M at year end three months ago, and $2.4M today.

I’m much more encouraged that their operational cash flow was $521k to the positive prior to working capital adjustments, and that figure is up 24% YoY.

Minor activities within the financing and investing side during Q1. Overall their cash position depleted by 10% in their first quarter, but we know both their cash flow and balance sheet will look significantly different when they produce their Q2 in August.

Share Capital:

• 174M shares outstanding, with 48% dilution during the past five quarters

• 28.4M warrants outstanding, all just ITM at $0.50 expiring in Nov of 2027 from last November’s raise

• 9.3M options, all ITM but none expiring for 6 years plus

• 11% insider ownership with institutions making up 6%

  

• No recent insider buying in the open market, but five different insiders did participate in the November raise for a total of over $1.5M

Income Statement:

Revenues came in at $7.2M, up 79% over a non comparable $4M a year ago due to new pharmacies added to the mix. Gross margins slipped by 170 basis points from 40.5% to 38.7%, and that drove an additional 72% gross profit dollars.

Operating expenses doubled to $2.8M, with cash burning expenses rising by a similar figure, both well above the rate of revenue and margin gains. While a portion of these expenses are from additional legal costs and fees stemming from their acquisitions, their G&A and payroll expenses are up about double as well, but they are not getting double the amount of revenue at the top. Something to monitor going forward.

After $205k in other income, mainly from interest received on their large cash position, PCRX delivered $127k of net income in the quarter, 50% less than the comparable period.

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Summary:

Nothing earth shattering within these numbers, nor did I expect it. The company is trending towards a $30M run rate with their current six locations, and with seven new ones announced and another three under LOI, it looks quite likely they will triple their current pharmacy count to at least eighteen by the end of 2026.

While the majority of their growth is from new locations, they are growing organically. This is one of the things that attracted me most to Pharmacorp - their ability to quickly turn around well established pharmacies and integrate new merchandising strategies for the front of the store while also driving additional prescription revenue.

The risks with Pharmacorp are the same as when I first talked about the company in my 2026 Wolf Pick article. PCRX will have substantial growth for the foreseeable future, but it will come at the cost of dilutionary measures, or debt. You need to fully understand that, expect that it will occur and be ok with it.

I am, and I’ll be looking to add to my position above the 49 cent range as those opportunities happen. Three stars.

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Disclaimer:

My intent is for my reviews to be a bolt on to due diligence that you have already completed. I receive dozens of review requests a week, therefore my own DD may be great or none whatsoever. Unless otherwise stated or implied, my opinions are on the financial performance of the company based on their most recent filings. I conduct these reviews to assist other retail investors whose research skills are limited when it comes to reviewing financial statements. I do not accept compensation of any kind from companies I review.

Wolf FINS Reviews are intended to be informational and are based on personal opinion. They are not intended to be financial advice, and all readers are encouraged to perform their own due diligence prior to their investment decisions, including discussions with their investment advisor.

Wednesday and Thursday of last week had quite a few smallcaps that I usually cover release their financials. I made a last minute decision on Tuesday to drive six hours to see the Canadiens/Hurricanes game, only to see le Bleu-Blanc et Rouge suffer the type of abuse usually reserved for red-headed stepchildren (sorry gingers).

I absolutely “wolfed” down a giant smoked meat sandwich which was a near sexual experience, so I do apologize to any patrons who were within viewing distance of that display. We also brought home some bagels so the journey wasn’t a total loss.

I missed a lot during the 36 hour trek, so let’s catch up. Three of these four stocks declined on earnings, two of which I warned you about in May’s WWW - What’s Wolf Watching article.

ZoomD Technologies was listed as a Danger Zone stock in back to back WWW articles, dropping 37% on their Q4 earnings, 16% on their recent Q1 for a total of 49% since April 29th. The “momentum” has officially ceased continuing.

They were put in the second Danger Zone after their Q4 experienced a 51% drop in revenue with 93% less net income. In Q1 they faced the daunting task of tougher comps, and with the knowledge of little to no progress on their two largest customers, the writing was clearly on the wall for a disastrous quarter. Anyone telling you differently (some indeed were) simply was just not paying attention.

I did not think it was possible for the company to come up short of my lowly expectations, but that is indeed what occurred in Q1. Not only were they down year over year by 64%, but down sequentially by 9% too. They lost $640k on the bottom line which was their first net loss in the last nine quarters. After their Q3 of 2025, they had generated $24.7M of TTM net income and they have now lost $350k in their last six months.

The one positive to come of of the quarter despite everything, was they produced nearly $900k of operational cash flow. That is of course down 83% from the comparable period, but at least they are not burning cash.

The company may have softened the blow, or at least attempted to by announcing an NCIB for up to 10% of buybacks the day before they dropped these vomit inducing financials. Investors have been clamoring for this for sometime, and the $31M sitting in cash supports such a move. I’m on record as saying that an NCIB would not occur until positive news happened with their two largest customers. I guess now we wait to see how quickly they action it.

With these poor results largely known (again at least to knowledgeable investors), the biggest information to come from these results was going to be the commentary on the call. More specifically, WTF is happening with their two largest customers (Shien and insert your best guess for #2)?

I’m not sure the transcript provides a lot of encouragement, nor clarity. It sounds, at least to me, a strikingly similar message that investors heard during the last two quarters. The sequential decline QoQ further supports this.

Even without these top two customers coming back fully on board, customer concentration of their top five customers remains high. It was 85% at this time last year, but their top five (with last years top two removed) still remains at 66%. As much as we have heard about customer diversification and growth outside the top two, $6.3M of their $9.5M came from their new top five without Shien and last years #2. If you were thinking at these price levels that customer concentration was risk off, I’m not so sure it is. Who’s the new number 1 customer and how much of that 66% do they make up? What if they decide to implement changes to THEIR operating models and KPI’s? Or tweak their software? What then? I think these are fair questions to ask.

In the past two years ZoomD has done an incredible job gaining operational leverage, which I’ve discussed many times. In my five years of performing reviews, they may be the best I’ve seen. But that isn’t what the below portion of the conference call sounds like. This sounds like preparedness for future softness on the top line. Limited visibility is starting to sound like a breakdown in the relationship. We’re talking six plus months here. It feels like someone is getting dicked around. Is it ZOMD, or is it us retail investors?

Of course it’s not all doom and gloom for Zoom. They have over $30M in cash and a current ratio over 4.6. Even while having two disastrous top line quarters, they still remain operationally cash flow positive and are one of the most operationally prudent company’s on the Venture.

They have instituted a buy back program, so we will see how aggressive they are over the next couple of months. I’d much rather see insider buying which has not occurred in the entire slide from $2.75 to under 50 cents. I do know what they did last summer, and that is to take lots of profit off the table. If they ain’t buyin, I ain’t buyin.

Stocks don’t trade on a strong balance sheet or high cash balance. They typically trade on meaningful progress. In the last six months, revenue is down 58% and went from $11M of net income to a $400k net loss. The bad news is the comps get even tougher in Q2 which we will see at the end of August. They are up against their highest revenue ($27.1M) and highest net income ($8.4M) quarter in their history.

I still see things getting worse here before they get better.

NTG Clarity is another stock that was put into back to back Danger Zone’s in my April and May WWW articles. They are down 28% from my April piece and are down 8% since last week’s earnings, decreasing by as much as 14% post Q1.

Unlike ZOMD, they are not hemorrhaging on the top line - in fact they were up 7.5% over the comparable quarter. But they were off by 11% sequentially, a seasonal impact we did not see at this time last year when they grew by 14%. Backlog also fell by $15M or 17% since the end of Q4.

NCI has a host of other issues, but in my view two major ones. The first is their investments in people during 2025 has not paid dividends, partially causing a 100 basis point reduction in gross margin, but more concerning is the 88% increase in G&A spend over the comparable quarter. A 7.5% increase in revenues while receiving lower margin with 88% more operational spending is a terrible combination. As a result, net income was down by more than 50%. But the pure comparable numbers are actually worse than that. They received a $1.6M birdie in income taxes compared to last year and a $260k birdie in forex. Prior to income taxes, net income was $134k vs $3.18M, plummeting by 96%. On an AEBITDA basis (a terrible metric to begin with) they came in at 4% vs their annual guidance of 13-16%.

The good news on that front is despite the above weakness the company did not back off their annual guidance. The company did face some holiday challenges and the current Middle East situation is not doing the company any favours. But let’s remember the annual guidance was pretty soft in most retail investors eyes and they have come out of the gate extremely slowly in Q1.

NTG’s biggest problem remains their cash generation, or lack thereof. They broke even from an operational cash flow standpoint in Q1, but still have burned $3.2M on a TTM basis.

While their current ratio is strong at over 3.1, their liquidity remains highly questionable with their A/R accounting for 78% of their current assets and current cash position not covering their one year liability commitments. If this were a one quarter glimpse, investors would be able to shrug it off. But it is far from that and in my view a systemic problem. Last month I said I felt their announced initiatives surrounding cash flow improvement were not enough and could in fact make things worse through delayed billings and offering extended terms and early payment discounts to top customers.

In Q1, early indications are I was accurate in that assessment as receivables grew by $1M and their aging report worsened.

Perhaps the most troubling part of this is statements like below. Calling it “working capital drag” minimizes what their biggest problem is, and no, they have not shown good results as Adam claims.

In the past two years the company delivered $15M in net income and created zero operational cash flow generation. What they did do in the last two years is raise $14M of capital through dilutive measures during that time. Investors participating in the 2024 raise are down by 45%, and those who participated in 2025 are down 65%. When I see statements like I highlighted below it angers me, as it implies that Adam thinks his investors are stupid.

Harsh? Absolutely, but I don’t feel its without merit. A current or former Wolf Pick is always going to generate more scrutiny. Below is what I said about their balance sheet and receivables TWO YEARS ago and even then it wasn’t the first time I raised these concerns.

Are they a better company than two and a half years ago when they were a 2024 Wolf Pick? Yes. But there are many reasons why they are not as attractive a company as they were at the end of 2024 when they produced $10M of net income on $56M in revenue. TTM revenue may be up by over 50%, but net income has declined by 57%.

2026 growth is now expected to be in the single digits and they are spending nearly double on operating expenses. We are not yet seeing the improved gross margins we were told would happen with the expansion of things like NTG apps, and the all important profitability to cash conversion is one of the worst you will find on the Venture.

I’m more than ready to give them credit when any of that changes, but until they do, I’m just watching.

For further reading I’ve attached Atrium Research’s report update to the image below. Note the downward revisions in their estimates below the revenue line. I think their profitability estimates are still too high.

This one will not be nearly as long as the last two.

Kraken Robotics has tripled in value over the past year and they are a twelve bagger since their 2024 Wolf Pick selection at $0.61, achieving as high as 17x from their 52 week high of $10.74 in March.

The stock is down by 11% since they released their earnings last week however.

Kraken hasn’t traded on traditional fundamentals for a long time and I don’t expect that to change anytime soon. It has traded on a cyclically strong sector, some “goonery” and pump on the OTC side, and most recently an extremely large acquisition.

It’s a good thing for PNG that they do not trade on traditional multiples or fundamentals as their Q1 results were quite poor. Outside of a 35% revenue increase, margins decreased by nearly 600 basis points and operating costs rose by 64%. This caused them to go from $519k of net income last year to nearly a $4M loss this year, and they did so while burning $4.7M of cash vs generating $3.1M last year.

Therefore I’m not about to make an argument in favour of their current $2.3B market cap.

Their $615M acquisition of Covelya is expected to close sometime in June, therefore their Q2 will be about as meaningless as these latest financials. The more important financials will be in Q3 when they report amalgamated numbers, as well as updated guidance from the newly combined entity.

Until the end of Q3 expect to see continued volatility making it attractive to swing traders. I will continue to hold the 20-25% of my initial cheap shares.

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Emerge bucked the trend, at least of the stocks covered in this article, as they leaped by 18% on the release of their earnings.

I bought some ECOM at the end of last summer, added on a dip and sold for a near 100% profit in December. I also retook a position within the Buy Zone listed above from my April WWW article that has yet to bear the same fruit the second time around.

No offense to Emerge, but while journeying back and forth to Montreal last week, they were lower on my priority list. So when I witnessed the 18% bounce on earnings I assumed they would be excellent. But upon further review, I have some questions.

In my Q3 review I cited balance sheet concerns with both their current and quick ratio’s. Those have worsened in the past two quarters with a current ratio of .84 (deferred’s removed) and increasing liquidity concerns with a quick ratio of just .48, as their cash plus receivables total less than half of their one year liability commitments. Even if the $1.2M in convertible debt goes to equity their cash plus A/R still falls about $4.4M short of their twelve month needs. Note this all takes place AFTER the company renegotiated their debt moving it from current to long term liabilities.

They can of course make that up with positive operational cash flow but they burned over $300k operationally during Q1. On the positive side that is half of their burn rate from last year but it does not put a dent in their near term liquidity needs.

On the P&L revenues improved to $5.9M, up 17% from the comparable period with gross margin slipping by nearly 400 basis points from 38.6% to 34.8%. Expenses converted modestly well with 4% additional spending with big savings in Marketing (30%) but offset by much higher SG&A which was up by 15%.

After experiencing 44% higher finance costs on their debt and a $330k bogey to LY in foreign exchange, Emerge suffered a $125k loss compared to a $400k gain.

Based on everything above, the bounce following their earnings I do find somewhat surprising.

The new CFO stated in the call that organic growth was up.

But that doesn’t totally jive with their segmented breakdown which shows declines in both E-commerce segments. Perhaps this is to do with backing out the $405k in other revenue from last year which is non-comparable. Total revenue grew by $879k, and their retail revenue from T2G of $1.33M was not completed until Q2 of last year, therefore I’m showing their organic number shy by $46k YoY.

Next quarter both their E-commerce and retail revenue from T2G will be essentially apples to apples. They will have a new stream of revenue for almost a full quarter for Viral Loops. They did a little over $100k/month in 2025 so the numbers will be small, but are expected to be profitable, cash flow positive and present some potential synergies with taking some marketing costs out of their e-commerce business. The next two quarters are also very big for the golf industry so the organic growth of T2G in their first comparable quarter will be key to watch.

The balance sheet may be just as important to watch going back to their weak liquidity situation. Their $8.15M of payables are all due within the next twelve months in addition to minor debt and lease payments. Their current cash & A/R leaves over a $4M shortfall and $4M of operational cash flow in the next twelve months seems very unachievable. I fully suspect a raise is on the table. This comes after raising $2.6M (net) for the Viral Loops acquisition which had an initial outlay of $2.1M, with $200k additional next March.

Overall, I feel Emerge is priced pretty appropriately here at a $17M market cap being slightly unprofitable on the net income line with a 28 EV/EBITDA ratio and a very real risk of a near to medium term raise. Q2 does present a big opportunity with the Viral Loops synergies and organic growth potential of T2G. Probably a three star performance at best.

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Disclaimer:

My intent is for my reviews to be a bolt on to due diligence that you have already completed. I receive dozens of review requests a week, therefore my own DD may be great or none whatsoever. Unless otherwise stated or implied, my opinions are on the financial performance of the company based on their most recent filings. I conduct these reviews to assist other retail investors whose research skills are limited when it comes to reviewing financial statements. I do not accept compensation of any kind from companies I review.

Wolf FINS Reviews are intended to be informational and are based on personal opinion. They are not intended to be financial advice, and all readers are encouraged to perform their own due diligence prior to their investment decisions, including discussions with their investment advisor.

The cannabis/nutraceutical hybrid. The big swing that hasn’t swung. The nickel humper.

My first review of Glow Lifetech was exactly one year ago after their Q1 of 2025. Then, they were a year removed from a cease trade order for three months for failure to file their annual financials. They have come a long way in that two year span going from some dreadful float management and next to no revenue, to a little over $2M in 2025 via posting 200% revenue increases for five straight quarters. That streak came to an end in Q4 when they posted a measly 53% revenue increase (read that with sarcasm).

A year ago the stock traded at six cents. I awarded them an unimpressive two stars in my first look, in large part due to their warrant overhang. They had 170M shares outstanding with over 70M warrants, 60M of which were ITM at the time. Over this past year the stock is down 17% off that review and currently trading at, you guessed it, a nickel.

November of last year is when I first began talking about a potential swing opportunity, but calling them “dead money” until the March/April timeframe, and the stock has largely traded in the 4.5 - 5.5 cent range since.

I cited three potential catalysts in the April/May timeframe for a potential swing. I felt so good about it that I listed it as a bonus opportunity in my 2026 Wolf Pick article, and yes took an eventual position too. The first catalyst was the last large batch of ITM warrants (40M) from last year, and the last two would be their annual financials and then their Q1 of 2026.

Two of those catalysts have now come and gone. About three quarters of those warrants expired unexercised and while their April year end financials received nearly a full star upgrade to 2.75 stars, the share price has been anchored to that nickel area once again.

While Glow did have some much improved financials and less warrant overhang at the end of 2025, their QoQ financials were very soft for the first time, down 19% despite being better by 53% on a YoY basis. That gave the market some pause, and when you combine that with the fact that most of the sector has been stuck in a quagmire, the nickel hump continued.

Last night the last of those three potential catalysts I’ve been discussing for sometime were released to the market. Are these financials the catalyst to complete that swing, or is it a three strikes and you’re out scenario here?

Balance Sheet:

Some small overall numbers here as one would expect from a $9.6M market cap, but impressive nonetheless with a current ratio of 2.7.

At quarter end they had $1.6M in cash, $570k in A/R, $470k worth of inventory, $150k of prepaids and $160k in loan receivables overtop of just $1.1M in current liabilities. That’s also their total liabilities as the company holds zero debt or long term financial commitments.

It’s both a healthy and liquid balance sheet as just their cash position alone is over 1.5x this years current needs.

Unfortunately the company discloses no aging report to gauge the health of their receivables. The loan receivable mentioned refers to a loan agreement with a subsidiary of one of their largest shareholders (Swiss PharmaCan). The loan is satisfied through royalty payments for MyCell™ products. In addition to the $160k listed in short term assets, an additional $380k sits in long term assets.

Solid start and an improvement YoY from my initial review.

Cash Flow:

Glow was operationally cash flow neutral in 2025 with just $15k of OCF burn in their recent fiscal year. Here in Q1 of ‘26 they experienced operational burn of $317k, approximately double the burn from the comparable quarter.

That burn however is due to working capital adjustments all going the wrong way, increases in A/R and inventory investments, and paying down payables and increasing prepaids.

Prior to working capital adjustments they performed better by $80k. I’m still willing to call them operationally cash flow neutral, as this is more than likely going to balance out in a quarter or two. With that said, I’d still like to see that aging report.

Share Capital:

• 192.2M shares outstanding, representing 13% dilution over the past year and 6% in just Q1 due to the near 11M warrants recently exercised

• 11.3M options outstanding with over 5M expiring unexercised in Q1, unsurprising at 30 cents. 4.5M sit on the bubble at five cents but do not expire until Sept 2029

• 8.9M warrants expiring this week at seven cents, most likely expiring unexercised unless something crazy happens this week

• Insider ownership listed at 28% per the company investor deck

• Modest insider buying in the open market but both insiders and their top shareholder (UK based Nova Capital) have been exercising warrants at the current share price)

Income Statement:

Glow Lifetech set a new quarterly revenue record with $643k in Q1, 35% better than a year ago. Gross margins declined by 230 basis points from 66.5% to 64.2%, but still a very healthy margin in this sector and that resulted in 30% more gross profit on those 35% more sales.

Glow achieved some very healthy operational leverage in the quarter with total expenses rising by only 4%, well under the rate of revenue and GP improvements.

That all translates to cutting their operational losses by more than half. After a few minor birdies to last year below the operational income line, their total net loss was $59k, a 60% improvement over a year ago.

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Summary:

Some solid improvement, and a much improved company from when I looked at them first one year ago. Revenue is moving in the right direction again after a hiccup last quarter, they have very sexy margins, run operationally lean and their cap table is cleaned up and more attractive than it has ever been.

The CEO also bats above his weight relative to the company’s market cap. For more on him, here is a recent interview from last week hosted by Smallcap Discoveries Paul Andreola.

But did Glow Lifetech do enough in this quarter (my last of three spring catalysts) to move the stock away from a nickel and give them a re-rate above their current $9.6M market cap?

I hate to say it as someone who has been holding a swing position for the last few months, but I don’t think so.

If you have been following Glow for sometime, you are aware of this chart that they have been using quarterly for sometime. It shows the number of distribution points (sku’s x locations) along side their quarterly revenue totals. The comparison of their distribution points vs their revenue may be starting to show some stagnation. That previous Q3 revenue record still looms large as this recent quarter only exceeded it by 2% with over 1000 more “distribution points”.

(The full investor deck is attached to the image below)

While Glow isn’t your typical cannabis play as they expand into nutraceutical verticals, the best comps we have are in the Canadian cannabis sector. When you look at those comparables, I think it is hard to make the case that Glow should be valued significantly higher than the multiples it trades at today.

Glow trades around 4.5x revenue, but on a TTM basis has yet to turn a profit on the Net Income or EBITDA lines. Looking at three other sector plays I’ve covered heavily in the past (LOVE/ROMJ/XLY), none trade higher than a 1.5x P/S ratio.

Auxly Cannabis (XLY), who’s management team I couldn’t trust as far as I could throw them are one of those that trade at 1.5x revenue. They also put over 20% of each revenue dollar on the net income line and trade at under a 7 P/E ratio. If they have traded flat over the last eleven months, it’s hard to make the case for significant share appreciation here.

So despite an upgrade to three stars to these financials, when it comes to my three spring catalysts for a great swing opportunity - I’m ringing them up on a called strike three. Get that nickel some KY jelly for some additional humping.

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Disclaimer:

My intent is for my reviews to be a bolt on to due diligence that you have already completed. I receive dozens of review requests a week, therefore my own DD may be great or none whatsoever. Unless otherwise stated or implied, my opinions are on the financial performance of the company based on their most recent filings. I conduct these reviews to assist other retail investors whose research skills are limited when it comes to reviewing financial statements. I do not accept compensation of any kind from companies I review.

Wolf FINS Reviews are intended to be informational and are based on personal opinion. They are not intended to be financial advice, and all readers are encouraged to perform their own due diligence prior to their investment decisions, including discussions with their investment advisor.

The dreaded quiet, un-announced Friday after hours earnings drop. When I saw the alert around 5 pm on Friday, my first thought was “uh-oh”.

The 2026 Wolf Pick had been up 16% leading into today’s trading session but these results do bring into question whether the stock can hold those gains.

No need for a long preamble, as it will be a busy earnings week. Let’s get into the review.

Balance Sheet:

Atlas’ current ratio remains solid at 1.6 but that doesn’t tell the whole liquidity story. The company has dipped into their LOC leaving them cashless at the end of Q1 with $6M in receivables, another $4M in federal grants receivable, $10.2M worth of inventory and $1.8M in other short term assets over top of $14.1M in liabilities due over the next twelve months.

The company has $19.1M of debt with $5.1M current. $3.1M of which is from their TD term loans and mortgages with $2M additional on the pre mentioned line of credit.

We will see more of the impact of this on the cash flow statement but the company appears to have pushed through an amount of spending required in order to be eligible for that $4M federal grant.

Cash Flow:

Despite the poor results elsewhere, Atlas generated $1.4M of operational cash flow in the quarter while ending the period with a donut on the balance sheet. This was highly influenced by working capital changes including a good collections quarter.

They utilized $4.7M in investments to meet that federal grant threshold. In order to fund that they dipped into their LOC for $2M thereby increasing their net debt burden in Q1 by $1.3M. Unsurprisingly the buybacks under their NCIB did not continue.

The quicker they receive those federal funds, the better their liquidity can recover.

Share Capital:

• 70.3M shares outstanding - company has had zero dilution over the past two years due to buying back approximately 300k

• 3.2M options outstanding. 250k exercised at 29 cents post financials. 2.5M remain out of the money.

• 15% insider ownership with BMO asset management as the largest institutional and overall shareholder at 10.1%

• Insider buying in the fall of 2025 with options exercised post financials.

Income Statement:

There is not a lot of positivity within this P&L. Revenue was down over the comparable period by 15.5% and margins were almost non existent, coming in very skinny at just 3% compared to 16% last year. Gross profit dollars only amounted to $273k, down by 84%.

Operating expenses were down 1.5% but not nearly enough to recoup the terrible numbers above.

The company did have a $400k birdie in tax recoveries which limited their net loss to $1.73M in the quarter, just about double the $846k they suffered in the first quarter of last year.

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Summary:

I cited anything near 56 cent support as a buy zone opportunity in my May WWW and that dip never happened, instead the stock shot up 13%.

An hour into today’s trading session the stock is only down a penny, or 1.5% which is not as big of a decline as I was expecting on these numbers.

The news release this morning accompanying the Friday results lists a whole host of rationale for the poorer than expected (mine) results.

Severe winter weather in the largest markets of BC and Ontario were listed among the biggest contributors. Unlike previous years where I headed south for the winter I can vouch for how bad it was. For the revenue they did receive, it appears they bought given it came in just above cost.

Their outlook remains quite positive and orders were up over 90% in the quarter with bidding continuing to be quite strong which may speak to potentially better overall macro conditions. The new robotics facility in Ontario is very near completion and should be operational early in Q3. While their balance sheet does not currently support obvious M&A activity, they are continuing exploring opportunities as the industry deals with historically low EBITDA multiples, and they do have a history of acquiring businesses at attractive multiples. Doing so in the near term appears it would have to occur through dilutionary measures or debt.

Aside from the poor numbers, they listed another faux pas in their news release listing their earnings call date from their April annual filings. Therefore I do not know if they will be holding one for later this week. I’ve reached out to the CEO for clarification.

Have to downgrade them to 2.75 here, but I feel pretty good about awarding them something higher in future quarters.

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Disclaimer:

My intent is for my reviews to be a bolt on to due diligence that you have already completed. I receive dozens of review requests a week, therefore my own DD may be great or none whatsoever. Unless otherwise stated or implied, my opinions are on the financial performance of the company based on their most recent filings. I conduct these reviews to assist other retail investors whose research skills are limited when it comes to reviewing financial statements. I do not accept compensation of any kind from company’s I review.

Wolf FINS Reviews are intended to be informational and are based on personal opinion. They are not intended to be financial advice, and all readers are encouraged to perform their own due diligence prior to their investment decisions, including discussions with their investment advisor.

How time flies! It’s been over two years since my review of Grey Wolf, and you’d think it would have been a more regular occurrence given their ticker.

I first reviewed WOLF back in Jan of 2024 and gave them an encouraging 3.5 stars. The market liked it too sending the stock up 33% within a few trading sessions. A quarter later in April I downgraded them and by August they had lost 40% of their value.

As a result of that downgrade they went into my ignore pile. The Wolf ignoring WOLF has turned out to be a bad idea as the company is up 170% since those August 2024 lows and 74% over the past twelve months.

Looking at their 2025 overall numbers that appears to make sense with a 33% revenue increase and 135% growth in net income. Their $56M valuation has them trading at a 32 P/E, 10.5 EV/EBITDA, 13.5x cash flow but a rather unimpressive 3.3% return on invested capital.

Grey Wolf released their financials after close on Thursday and Friday the stock traded a little better than flat, up a penny or .61% to close at a buck sixty five.

In addition to operating two pharmacies, a 25k sq ft facility in Manitoba and another in Ontario set to expand in 2027 from 10k to 28k square feet, the company also sells, markets and distributes products to veterinary clinics across the country. I’ve linked the entire presentation to the image below to learn more about them. As you can see both of their segments deliver very healthy margins and both had Q1 growth with the pharmacy business up by 5.6% and Animal Health revenue by 13.8%.

Grey Wolf Animal Health has a proposed name change in the works to become Grey Wolf Health as it better recognizes their pharmacy services to both animals and humans.

Let’s dive into their financials and other information to see if there is anything to howl about.

(Free version will be delivered to free subscribers on May 29th)

Balance Sheet:

Grey Wolf possesses a very solid current ratio of over 2.6 that consists of $8.8M in cash, $2M of receivables, $5.3M worth of inventory and $550k in prepaids overtop of just $6.3M of liabilities due over their next twelve months.

Their cash position covers all of those liabilities showing excellent short term liquidity. The company does not provide any detail on their receivables including an aging report but it is down from the end of the year and I couldn’t find any history of large write downs.

Grey Wolf does have some debt, $24.6M in fact which is a bit of an eye opener given that figure is about 44% of their total market cap.

Unfortunately you have to go back to their annual financials to obtain the details on the above loans. From left to right the first loan is what remains on a $11.5M loan at an attractive 4%. Next is what remains on a $14.3M loan which occurred in November of 2024 to partially fund the CPM acquisition. This loan carries a rate of 7.09% and ends in 2030. The last is a $4.4M five year mortgage used for the land and buildings of the CPM acquisition and carries the same 7.09% rate.

In addition, the company has a $750k untapped line of credit with RBC, and $4.5M in deferred tax liabilities.

Cash Flow:

Grey Wolf achieved $1.53M of operational cash flow in their first quarter of 2026, 45% more than what they achieved in the comparable quarter, notable with very minimal working capital adjustment assistance.

They utilized $127k in the quarter on hard assets, received $249k from option exercises and paid half million worth of debt payments.

Overall, they improved their cash position in the first three months of the year by 14% or $1.1M.

Encouraging so far.

Share Capital:

• 34.5M shares with under 1% dilution in the past year from options being exercised

• 192k broker warrants expiring in three weeks. They just sit out of the money by two cents at $1.67

• 2M options outstanding. 1.57M are ITM with none expiring within the next year

• Insider and Employee ownership of 24% (per investor deck). Bloom Burton & Co is the largest shareholder owning 10.5%.

• Small open market buying by four different insiders last June, but totaling just 58k shares

• It’s notable that the company adopted a RSU plan for the first time in May of 2025 (a 10% SBC plan) but gave out their first RSUs last month - a rather negligible amount.

Income Statement:

Revenue grew in Q1 to $8.75M, a 10.5% increase over the comparable period. Gross margin improved by 150 basis points to 54.1% which drove higher gross profit dollars by 13.5%.

Total operating expenses grew by 11% at a slightly higher rate than revenue with their two main cash burning buckets, Sales and Marketing and G&A growing by 25% and 13% respectively. That will leave them one segment shy of achieving a Wolf Trifecta in Q1.

Operations Income grew by 31% to $683k or a ratio of 7.8%. Below that line is where their debt becomes a factor as the $438k in interest expense in Q1 makes up 64% of their operating income. After paying 133% more taxes YoY, their net income was $145k, 1.7% of revenue, but over 5x what they achieved in Q1 of last year.

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Summary:

I think the 170% increase in valuation over the past twenty or so months has been deserved. But how much upside remains is the big question.

Their pharmacy segment has been the driver of their growth story going over 10x since 2021 on a TTM basis, and 58% since 2024 while the Animal Health segment grew by 11%. Their new Ontario facility will nearly triple that facilities footprint next year which should support further growth.

The company is very quiet in the press release department, only putting out five news releases in the last nine months - three of them earnings calls, therefore it is challenging to be up to speed on what the company is up to.

One of their press releases was in regards to their participation at Smallcap Discoveries last year. I’ve included the presentation below, and maybe that will assist it getting more than the sub 200 views it has currently.

Animal Health and pharmaceutical compounding do not seem like seasonal types of businesses, but it’s notable that WOLF’s revenue and profitability have declined for three straight quarters. They will be up against much more challenging numbers in the quarters ahead without the benefit of their big acquisition they had at the end of 2024 which drove 30%+ growth for four earnings straight.

Their next two quarters represent nearly 75% of their profitability comps, so with a 32 P/E, it feels like a risky time to give Wolf a swing here. They will also be facing some increased costs without the benefit of revenue due to the new buildout of their Ontario facility.

There is some small regret for putting them on my ignore list, perhaps too abruptly a couple of years ago. But these comparables do not make me want to make up for lost time with a position here just yet.

Very watchlist worthy. 3.25 stars.

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Disclaimer:

My intent is for my reviews to be a bolt on to due diligence that you have already completed. I receive dozens of review requests a week, therefore my own DD may be great or none whatsoever. Unless otherwise stated or implied, my opinions are on the financial performance of the company based on their most recent filings. I conduct these reviews to assist other retail investors whose research skills are limited when it comes to reviewing financial statements. I do not accept compensation of any kind from companies I review.

Wolf FINS Reviews are intended to be informational and are based on personal opinion. They are not intended to be financial advice, and all readers are encouraged to perform their own due diligence prior to their investment decisions, including discussions with their investment advisor.

We are less than a month from my upgraded Q4 FINS review as the company is already out with their first quarter of 2026.

Back in February, I announced Biorem as my first mid-year pick of 2026 and it was certainly one of my higher conviction plays recently. I identified an important six week window between their Q4 and Q1 releases where their would be an opportunity for some rather significant share price appreciation. With this early FINS release, that window has shrunk to four.

As of this morning, Biorem is up 38% from the February Seal of Approval pick, and just 17 cents shy of the $3.73 price target I set at the time.

What I had wondered back in February is if their Q1 financials would turn into a “sell the news” event. I felt that depended on if they could re-fill that backlog along with the anticipated revenue increases they would have over their first three quarters.

Their earnings headlines do indeed suggest a new record backlog, so does this now turn into a longer term hold? Let’s dive in.

(Free release scheduled for May 21st)

Balance Sheet:

Biorem has improved their current ratio over their last two quarters, now sitting at 3.3 with deferred’s removed. That is made up of $10M in cash, $9.3M of receivables, $2.9M of revenue to be billed, $2.4M worth of inventory and $4.3M in prepaid expenses. All of that overtop of just $8.7M of liability commitments due over the course of the next twelve months. Those commitments are easily covered by their cash balance alone, therefore showing very good liquidity.

BRM has $1.1 M in debt at an attractive 4% interest rate and an unused $3M line of credit.

Cash Flow:

A slight hiccup here with $1.13M of operational cash burn during their first quarter, which compares to $4.7M of positive cash flow last year.

Given the large working capital swings I have zero concerns with the burn or variance to last year. They reduced their A/P by 43% in the quarter and had a significant 73% increase in their prepaids during their historical softest revenue quarter. I would anticipate this will reverse next quarter.

They made minor asset investments of $271k and paid down their debt by $147k in the quarter. Overall their cash depleted by 10% in their first three months but I would anticipate a rebound in Q2.

Share Capital:

• A very tight float of just 16.1M shares outstanding, with virtually no dilution last year

• 3.3M options outstanding, all well ITM with 2.3M expiring in early 2027. Only 50k new options were granted in 2025

• Announced an NCIB in June. Bought back a limited number of shares over a few week period in September. Not much of a commitment here - more like a game of just the tip to see how it feels.

• Limited insider ownership of just 2%. Minor insider buying last May

Income Statement:

Revenues in Q1 came in at $6.8M, an impressive 44% jump over the same period last year, although well shy of their eye popping record Q4 of just under $17M. Gross margins were 300 basis lower at 20.4% vs 23.4% which generated 26% more gross profit dollars than last year.

Total operating expenses were just 6.7% higher on 44% more revenues, but with 34% more spending on Sales and Marketing. Overall some very good conversion which carries down to the Net Income line which delivered $201k of profitability which is more than 5x than last year.

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Summary:

A pretty short review but Biorem has some relatively simple financials and they contain zero red flags or major concerns to highlight.

The biggest question to answer is what’s next and do they have additional upside from the 51% appreciation in share price since their low in mid January. First let’s look back on what I said back in February when I listed a price target of $3.73.

TTM revenue has fallen short of my $50M target, coming in at $44.4M, but the good news is I nailed their net income figure which came in at $4.94M. But given that the company had order intake of $18.7M increasing their backlog to a record $77M offsets that prediction miss from the top line IMO.

When I issued the mid year pick, the company had $71M of backlog which now sits at $77M. At the time, the CEO anticipated that 75% of that number ($53.3M) was expected to be achieved in the next four quarters. At the halfway point of that prediction they achieved $23.8M, leaving $29.5M to potentially be recognized over the next six months. Using the comps above (up against $21.7M in Q2 = Q3), that suggests the potential to beat the next two quarters by 36%.

Biorem has now produced 11 straight quarters of positive net income. That certainly helps to withstand some of the lumpiness of their revenue. When a company can produce profitability whether their revenue is as low as $4.7M, as we saw last year in Q1, or as high as $16.9M as we did in Q4, it really speaks to the operational excellence of the leadership team. My biggest question leading into this quarter was could their sales team refill that backlog. They did that and then some achieving another record of $77M and that is 1.5x of my anticipated Q3 TTM estimate. That supports the additional marketing spend this quarter as well.

For me they answered my biggest questions coming into these numbers. For me, it’s changed from a sell the news event in May to a longer term hold.

I’m also upgrading them for the second consecutive review to 4 stars.

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Disclaimer:

My intent is for my reviews to be a bolt on to due diligence that you have already completed. I receive dozens of review requests a week, therefore my own DD may be great or none whatsoever. Unless otherwise stated or implied, my opinions are on the financial performance of the company based on their most recent filings. I conduct these reviews to assist other retail investors whose research skills are limited when it comes to reviewing financial statements. I do not accept compensation of any kind from company’s I review.

Wolf FINS Reviews are intended to be informational and are based on personal opinion. They are not intended to be financial advice, and all readers are encouraged to perform their own due diligence prior to their investment decisions, including discussions with their investment advisor.

After years of doing this, you think I would know better by now than to comment immediately on socials and bulletin boards when financials drop. The argument can be made that I should probably refrain from doing so all together. Will I ever change? Not a chance.

If you read my “Mother of Reviews” article released on Mother’s Day, than you’re aware that I had some concerns regarding the QoQ Q4 revenue numbers for Happy Belly. My initial glance Tuesday night at the Q1 financials had a similar feel and that seemed to have set off a bit of permabulls - one of my favourite pastimes.

I’m almost 100% certain that I have written more reviews on Happy Belly than any other stock, reviewing every quarter since early 2022. In November of that year, they received my first upgrade when the stock traded at 8 cents and was under a $9M market cap. A month later they were included in my first ever batch of Wolf Picks when the stock traded at a dime.

So much time has passed that showing a five year weekly chart is now a relevant endeavour. Today they sit 20x higher from that upgrade and more than a 15 bagger from the Wolf Pick with a market cap approaching a quarter billion dollars.

A large part of the bull case back then remains the same - the bet on the jockey, and the team striving to do something they had done with some degree of success before. That stir the other night resulted in some chatting with that lead jockey, Sean Black yesterday morning.

Many likely don’t realize that I’ve been in a similar chair as Sean is today in taking a brand from zero dealer/franchise businesses to over 250 within a decade. I know what it’s like to have accountability for revenue and profitability numbers and having someone with only macro visibility into the business slice and dice my numbers. Let’s just say Sean handles this better now than I did back then.

At the same time that isn’t going to change the critical lens that I review all financials with. Wolf Picks, and those I hold larger positions in will always get an extra dose of scrutiny. If my neighbours kid received a “C” in Social Studies, I’d say “Way to go little buddy”. If it’s my kid, they’d get grounded for a week.

If you’re a reader of mine, I would hope you would want it that way. If not, I have bad news for you.

Let’s get more granular into Happy Belly’s Q1.

Balance Sheet:

A big improvement in the company’s balance sheet Q1 over Q4, now sporting a current ratio of 2.2 consisting of $6.2M in cash, $2.4M of receivables and $700k in other short term assets overtop of just $4.3M in liability commitments (deferred revenue removed) over the next twelve months.

The biggest difference QoQ is their strengthened cash position and I’ll touch on the why in the next section. The end result is much improved liquidity with just the company’s cash position at 1.4x current liabilities compared to only .65x a quarter ago.

I have been keeping an eye on their A/R over time and I don’t feel I’ve addressed it in a review yet, but it does appear to have the beginnings of something to be mildly concerned about. Less than half of their receivables are current with a third over 90 days past due. A quarter of the 90 days plus is booked as potential losses. In this model I would expect the bulk of their A/R to be from franchise fees and royalties. So, this certainly is something to monitor as it is very important to cash flow and franchisee health. The company also mentions “other receivables” from investors but those amounts do not appear to be broken down in the financials or MD&A. If those are material amounts, disclosure needs to be better.

HBFG has $1.4M of debt in the form of convertible debentures. The remaining debentures all stem from Feb 2024. The holder of the debentures has the option of cash or shares and since the conversion price is $0.50 look for them to be converted to shares in Feb of 2027 or earlier. Since that is less than 12 months from the end date of this quarter, I believe these amounts are incorrectly stated under long term liabilities.

Cash Flow:

For the second straight quarter we have operational cash flow comparisons going the wrong way with $940k of cash burn vs $156k last year. Much of that variance is due to working capital adjustments. Most of those adjustments are from the previously mentioned accounts receivable, making that aging report more important to review in future quarters.

The influx in cash in Q1 came both through investing and financing activities. In February, Happy Belly sold their Holy Crap cereal CPG brand. It was an excellent brand but I think exiting their CPG segment to focus on QSR was the appropriate step in their growth journey. Getting $1M for it feels like a good return as well.

The company also received over $3.7M into the treasury through warrant and option exercises. That is a nice segue into the next section.

Share Capital:

• 148.2M shares outstanding representing 10% dilution this quarter and 15% dilution over the past five quarters.

• All of Q1 dilution stemmed from exercising warrants and options

• 31.9M warrants outstanding with 14M well ITM at 20 cents and expiring in just over a month. All remaining warrants are at $2 and will be vested on future share price targets. See their news release from November or one of my previous reviews for more details

• 16.9M options. The most recent 12.1M have similar vesting triggers as the recently mentioned warrants

• 3.2M options also expire next month ranging from 40 cents to $1.14.

• With all of the options and warrants exercised I have insider ownership around 27% but with all of the recent activity that may not be 100% accurate. Let’s call it ballpark

Insiders have also been regular buyers in the open market for years, more so than any other stock I have ever covered. Insiders have however been performing some cross trades to sell shares in order to exercise their numerous performance warrants and options. I anticipate we will see a lot more of this in the next month with a staggering 14M warrants and 3.2M options expiring in less than five weeks. This would bring approximately $5.4M into the treasury increasing their cash position by 87% from where it is today - it’s significant. The value of these shares is worth well over $25M so there is a lot of profitability on the table for the holders of those warrants and options. Therefore expect some insider selling on the horizon.

That will take the float to approximately 165.5M shares by the time we see the company’s second quarter. That’s an additional 12% dilution from today giving an implied market cap of about $260M.

Let me say if you have issues with the dilution you haven’t been paying attention to this story. Insiders were rewarded for share price performance, and the influx’s of capital will largely come from them to support future growth. I’d much rather have it this way than your typical private placement. Given that big push to get the stock to $2 is why I sold some and above that number and re-purchased them at $1.50.

Income Statement:

There are a lot of YoY and QoQ numbers to get through. There is no question the YoY numbers are tremendous. Firstly is purely the number of units up by 74% from where they ended Q1 a year ago, going from 50 QSR locations to 87 at the end of March. I’m sorry to say the company did get a couple of figures (percentages) wrong in their MD&A and news release.

Product Sales rose by 70%, not the 101% as stated in the MD&A, and Royalties and Fees rose by 151%, not the 118% as stated in their earnings news release. QSR system sales rose by 76% to $19.25M. That is a 14% increase on a QoQ basis but just better than flat when compared to Q3 of 2025 on 19% more restaurants. Total revenues rose by 82% over the comparable quarter.

Gross margins, while not a specific P&L line, took a rather substantial hit for the second straight quarter coming in at 45%. There are some seasonality impacts with additional costs (Uber Eats), but I think it’s a large miss by not addressing the margin line whatsoever within the MD&A. Gross margin dollars rose by less than 40% on 70% more product sales and 74% more stores and that was the biggest contributor for the quarter’s weak cash flow.

I’m overall aligned with the company’s SBC strategy that rewards insiders based on share price as it sets up a win/win situation with shareholders, therefore I’m not concerned with the high costs seen this quarter. Firstly, it was expected. Secondly, they are non cash burning.

With SBC costs and depreciation stripped out of operating expenses, cash burning expenses rose by 97%, and that is a bad combination when only 40% more gross profit dollars were generated. Again with SBC removed, net losses amounted to $681k in the quarter, and that is about 3.8x worse than a year ago.

Summary:

Did the quarter live up to my expectations? No. Is it a disaster? Also, no.

Seasonality variances within Heal given their products they sell and the fact make up the largest portions of total restaurants are a huge factor here. I was surprised to learn from Sean about the seasonality impacts of brands like Rosie’s and Yolks. The fact the company announced and delivered Q1 well before the deadline also factored into not meeting what I had expected.

So, if you are willing to accept the above rationale for only matching off 2025 Q3 in this most recent quarter, that just amplifies investor expectations for seasonably better quarters of Q2 and Q3.

What the company is doing exceptionally well is expansion, and by the time we review their Q2 financials, their store count will almost certainly exceed 100 locations. That justifies some of the additional costs we have seen in the last two quarters. By the end of next quarter with the warrants and options earlier, they should be well capitalized to support continued growth.

The concerns and things to watch out for are just as numerous as their strengths however.

If we accept the new seasonality situation, that is going to present cash flow challenges. That requires discipline and execution, and those concerns increase with mentions in the MD&A about understaffing in the accounting department. The unfortunate passing of their CFO last year had to have been a major contributing factor. They have done some recent hiring to help fill the gap with their new CFO still coming up to speed. That understaffing may be showing given the rather simple errors mentioned earlier, and could be contributing to their growing A/R and poor aging report.

Those seasonality challenges also extend to the franchise network - probably more so. To be a successful franchisor, you need healthy franchisees. I can tell you from experience that many franchisee’s weaknesses come on the operations side, and managing their own cash flow is a big part of that. I could do an entire article on this topic.

Given the above, operational support to that growing network is key. Given they are currently operating more than ten brands, that makes that challenges larger. Maintaining brand standards, marketing and operating support and infrastructure across ten brands with a massive geographical footprint is much more daunting than I think the average retail investor realizes. The number of brands and those geography challenges will grow this quarter with the acquisition of Ghost Taco scheduled to close shortly, as well as the first Heal location in Texas.

Then there are the brands that have been slow out of the gate. Lettuce Love, Pirho and Joey Turks really haven’t been part of any news flow in a very long time. I discussed this in more length in my Q3 review.

Lastly is the $260M valuation (including upcoming dilution at today’s share price). They still need to grow into that figure as one would be hard pressed to justify that number today. Can they do it? I believe they can, but it will not be without a number of challenges and obstacles.

Sticking with my three star rating from last week. Cue up David Bowie and Freddie Mercury. Pressure is on for Q2.

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Disclaimer:

My intent is for my reviews to be a bolt on to due diligence that you have already completed. I receive dozens of review requests a week, therefore my own DD may be great or none whatsoever. Unless otherwise stated or implied, my opinions are on the financial performance of the company based on their most recent filings. I conduct these reviews to assist other retail investors whose research skills are limited when it comes to reviewing financial statements. I do not accept compensation of any kind from company’s I review.

Wolf FINS Reviews are intended to be informational and are based on personal opinion. They are not intended to be financial advice, and all readers are encouraged to perform their own due diligence prior to their investment decisions, including discussions with their investment advisor.

That sent the stock soaring, resulting in the 10th Wolf Pick in the last three years to hit three bagger status. The stock had a significant pull back yesterday leading into these numbers, nearly by 12%. There wasn’t any detail provided below the revenue line so it’s likely some jittery investors took some profits in case the rest of the numbers didn’t live up to the high expectations.

Up against some time constraints today, so let’s dive right into the numbers.

Balance Sheet:

iFabric maintained a current ratio of 1.8 after Q1 consisting of just $1.8M in cash, $25.5M worth of receivables, $16.8M worth of inventory and $1.3M in other short term assets overtop of $25.3M in liabilities due over the next twelve months.

As you would expect with a nearly 300% revenue increase, A/R grew substantially and we will likely see a negative looking cash flow statement as a result. The company apparently only issues an aging report with their annual filings, but I can say when that was reviewed less than two months ago, it was one of the most impeccable ones I’ve reviewed.

Inventory values only depleted by 20% on all of that revenue and I expected that number to be greater. The company did however increase their scrubs program in Walmart to 1,000 additional stores later in the quarter, so that is likely related.

Liquidity therefore does not look very strong with their cash plus receivables just covering their one year financials commitments, with the A/R portion of that totaling 94%.

iFabric has $12.9M worth of debt, all classified as short term. A good portion of this debt was used to front the significant inventory ramp up in order to support their new programs in Walmart and Costco.

They also have a $3.6M bank loan which I made an incorrect statement on in my last review. I suggested the loan was listed as current due to a covenant of the loan being missed which was later resolved. While that was true the reasoning for the loan being listed that way was due to a “payable on demand” feature in the loan despite it being a long term mortgage. Thanks to the company reps for reaching out to me to clarify.

Cash Flow:

As expected, their Q1 operational cash flow does not look great showing $4.7M worth of operational cash burn compared with generating $3.4M in the comparable quarter.

This is all due to their accounts receivables growth of $15.6M within working capital adjustments. As you can see, prior to working capital changes, their OCF was $4.5M vs just $300k a year ago.

Had this been another scenario where the company was selling to unknown clients, it could be cause for some concern. Since the vast majority of their receivables are with highly reputable retailers, and given their A/R management has been excellent in the past, I feel this will reverse rather quickly with a large stream of cash in the next couple of quarters.

The company increased debt by $2.6M in the quarter to support their growth. Overall their cash depleted rather sharply in the quarter by 58%. Look for a big rebound here in Q2.

Share Capital:

• 30.3M shares outstanding. identical number from one year ago in a historically well managed float

• 1.9M options outstanding, all ITM

• Zero warrants with all 2.9M outstanding last year, expiring unexercised.

• 66% insider ownership including 63% from President & CEO Hylton Karon although historically allergic to transactions on the open market

Income Statement:

These financials are the equivalent of an NBA player getting posterized. They slam dunked these financials on the market, while tea-bagging their competitions faces.

Clearly the statement I was looking to review most to ensure the company delivered underneath those record revenue numbers.

Those Q1 revenues came in at $27.5M, a half million more than the high end of their upped estimate of $27M at the end of March. That compares to just $7.1M last year for a 288% increase. Those revenues did come at the expense of some margin due to product mix and entering into big agreement with one of the world most cutthroat buying groups - Walmart. Their margin rate slipped by over 600 basis points to 32.5%. Gross profit dollars increased by 227%.

They gained a lot of operational leverage in the quarter which was what I wanted to see. G&A expense rose by 20%, while selling costs (highly commission based) rose by 135%.

Earnings from operations rose to $4.9M in the quarter against just $115k last year. Even after an expected much higher tax burden they still drove $3.7M to the net income line, 41x more than the $88k last year.

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Summary:

That $3.7M in profitability in just their first quarter is higher than any YEAR in the company’s history, and the quarterly revenue figure is 84% of what they achieved all of last year, two huge reasons why the stock is up by 150% since my 2026 Wolf Pick and 275% up from a year ago.

While investors were counting on huge numbers from their intelligent fabrics division, it shouldn’t be overlooked that the Coconut Grove (or intimates) division also achieved massive numbers of a 212% increase.

I guess the big question now is what the company does now for an encore, and how the rest of the year will shape up.

I’ve attached Atrium Research’s initiation report to the image above. It is a very good basis to start your research for anyone new to iFabric, but I will say I think they did a terrible job on the numbers portion which I pointed out in the Wolf Den discord upon it’s release. They really missed the boat on the expense lines, particularly their G&A costs estimating $5M in Q1 which came in under $1.9M. The selling costs numbers for the balance of the year also look light. All of that translated to the bottom line beating their estimates by $3.1M on the Net income line. This actually could have translated into investors selling into the news for today IMO.

To extend your due diligence the company has also updated their investor deck for 2026. Attached below

To better understand how the rest of the year might shake out, the company will be hosting a webinar with Adelaide Capital on Thursday. You can register by clicking the link below.

Until we know whether the company will continue to provide guidance or if Q1 was a one time deal, it is really hard to peg a potential valuation. I think $70M in revenue with $8M in net income is achievable which would put them at a 14 forward P/E with tremendous growth potential. I reserve the right to adjust that thinking on Thursday.

Upgrading iFabric to 3.5 stars with the potential room for a lot more once their cash flow flips, and I am expecting it will.

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Disclaimer:

My intent is for my reviews to be a bolt on to due diligence that you have already completed. I receive dozens of review requests a week, therefore my own DD may be great or none whatsoever. Unless otherwise stated or implied, my opinions are on the financial performance of the company based on their most recent filings. I conduct these reviews to assist other retail investors whose research skills are limited when it comes to reviewing financial statements. I do not accept compensation of any kind from companies I review.

Wolf FINS Reviews are intended to be informational and are based on personal opinion. They are not intended to be financial advice, and all readers are encouraged to perform their own due diligence prior to their investment decisions, including discussions with their investment advisor.

Rather than do seven separate deep dives, it feels appropriate as six of the seven of these companies reported their Q4 and annual filings in the past two weeks. They will therefore be reporting their first quarter within just a few weeks. Watch for my more typically formatted reviews when those are released.

As a group, with two exceptions, I would contest their results similar to words you wouldn’t want to hear on your wedding night - soft and disappointing. I will go in order from what I perceive to be the worst to best.

After going over 6x in share price between last May to October of last year, the stock is now up a measly 15% over the past year and down 81% over the past seven months.

This all occurred with annual revenues up by 15% and net income up by 70%. Those annual revenues of nearly $86M with $20.7M in net income has the stock trading at valuation multiples of under 3 P/E, 2.25x cash flow and 1.2 EV/EBITDA. They are currently at a market cap of $53M while having over $30M of cash on hand.

While the back half of the year was considerably softer than last year including a disastrous 50% decline in top line revenue, it feels like a good portion of the decline in valuation has been self inflicted through very mixed messages to the market. For months those that followed the company knew there were concerns with the companies top two customers. The sequencing of events was very well explained in this Valuation Desk piece published shortly after their earnings.

The Valuation Desk

Zoomd Technologies (TSXV: ZOMD) - Q4 2025 Earnings Review

Zoomd trades on the TSXV but reports in U.S. dollars. All figures in this piece are in USD unless otherwise noted…

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3 months ago · 11 likes · 5 comments · The Valuation Desk

I think if the company was more forthright in their comments after Q3 and even in their subsequent interview with Small Cap Discoveries, the stock would be in a better position than it is in today. Investors went to “fixed” and “back to business” with these two clients, to “limited visibility” with one and “signs of realignment” with the other. Those aren’t exactly comforting statements, particularly when you look at the monster comps the company is up against, starting with their Q1 scheduled to report by the end of May, followed by the best top and bottom line quarter in the companies history in Q2.

Until we know where those two customers stand, it’s really impossible to assign a realistic valuation here. If they return to their former glory, than ZOMD is vastly undervalued. The market currently has them priced as lost causes. I feel that is likely unfair, but with the varying comments that some could (and have) perceive as dishonest or misleading, the market is currently pricing in all of the risk. It’s not the first time I have questioned the amount of ZoomD’s disclosures - their interim financial statements typically total only eight pages and that includes the title and table of contents.

Is it all doom and gloom? No, and far from it. When you parse out the impact of their two largest customers, they have been able to grow the rest of their business by around 30%. They also stand to gain some substantial wins from this years World Cup. They have also shown themselves to be excellent operators with their operational costs, spending the same amount in operational expenses as they did two years ago while virtually doubling revenue.

They also possess an immaculate balance sheet with a current ratio of over 5.4 while sitting on over $30M in cash which is 4.4x their entire 2026 liability commitments. There has been lots of speculation on what the company should do with that cash windfall, with the overwhelming consensus that it should contain a healthy level of share buybacks.

The fact they haven’t pulled the trigger on an NCIB is very telling. If they felt these two customers were going to come back in full force within a short time frame it would have happened already. It’s also notable that insiders don’t feel these valuations have hit bottom either, as their wallets have been firmly entrenched in their pants throughout that 80% share price free fall.

My gut instinct is if there is good news on the horizon with these two customers, buy backs will commence AFTER their Q1 is released. Why do it now knowing Q1 is shaping up to be a massive dud as well? That quarter was completed over five weeks ago, and the commentary in their MD&A is more recent. That sets up for an absolute disaster for their first quarter earnings, likely worse than the ones we just witnessed.

The bottom line is just as important as winning back those two customers, is winning back investors trust. I’m not sure they can fully win back mine. One of my biggest downgrades on record - 4.25 stars down to 3.

Believe it or not, I had a difficult time determining who should go first in my worst to best ranking - ZoomD Technologies or NTG Clarity.

NTG Clarity is still up over 6x from my 2024 Wolf Pick, but let’s not forget they were only three cents shy of becoming a 20 bagger from 15 cents to their all time high of $2.97. They are currently off 69% since that ATH eleven months ago.

NTG’s stock price is down 13% from their earnings released on April 27th. While the company had a solid year on the revenue line, up 49% on the year and 39% in Q4, profitability suffered heavily with net income down 46% in 2025 and 68% in Q4. Unlike some of the communication issues with ZoomD, NTG did telegraph much of this abnormal balance between their top and bottom lines over a year ago with their 2024 annual filings.

At that time they gave guidance of $75M in revenue with AEBITDA margins (eww) of between 16-20%. In fairness to NTG they did cite lower profitability targets due to increased taxation and investments in staff to go after new business. They beat revenue coming in at over $83M but missed the low end of their profitability target, achieving only 14%. That was a pretty significant announcement at the time. In 2024 the company achieved over 17% net income, and they changed their guidance from an N.I figure to a dreaded AEBITDA one. Then they missed it, and rather significantly at that.

NTG now trades around a $48M market cap, giving them valuations of less that .6x of revenue, 8.5 P.E and just 3.6 EV/EBITDA. By all normal standards these would appear very cheap, but due to their historical cash flow woes which I’ve discussed on several occassions, investors have no choice I believe to discount it. My problem with reading their Q4 financials is that cash flow situation has the potential to get even worse.

If you listened to their conference call you may have a different impression. Here is the portion of the transcript which speaks to this.

While Adam is correct that receivables went down this quarter, the problem is that is the first time that can be said in their last ten quarters. Their A/R aging reported also improved as noted. Here’s the problem with that - your aging will of course look better if you don’t bill your customers to begin with. That is not only what happened but it appears to be part of a bigger strategy when Adam mentions they are giving preferred payment schedules to certain clients. While that isn’t completely abnormal business practice, it is poor for cash flow and they already have more than generous payment terms to begin with. To top it off, Adam discusses early payment incentives which will impact profit margins.

In summary, they already have a lag built into their billing cycle and have seemingly added to this by the increase in contract assets YoY and QoQ. They have very generous payment terms compared to business norms and giving preferential treatment and discounts on top of the above to some. A company with $15M of net income over two years should not have negative cash flow over that same time frame and I just don’t feel management gets it based on their comments.

Last thing I will touch on is their seemingly weak guidance for 2026 of $90M in revenue with 13%-16% of AEBITDA. That is mid single digits on the top line with soft guidance on the bottom, particularly given the tax situation which they supposedly worked around with a Saudi Arabian LLC. Maybe it’s an under promise, over deliver type situation given missing 2025 profit guidance but I’ve decided to move on from the stock, selling bits and pieces over the last couple of weeks and totally closing my position on Friday.

Maintaining my 3 star review from November.

We’re moving from the very poor financials from the past couple of weeks into the more moderately disappointing ones, and that’s what we have here with Happy Belly Food Group. I probably could have ranked them anywhere from 3rd to 5th, but since I have more skin in the game with HBFG, I’m ranking them here.

The stock is off 3.5% since releasing their financials on May 1st, despite getting some positive acquisition news. Assuming it closes they will add a new brand in the Mexican fast casual arena in Ghost Taco with six existing locations in Ontario.

The year over year results for both the full year and Q4 were impressive as we have come to expect. QSR system sales were up by 108% on the year and 90% on the final quarter. I say as expected as they ended with 77 locations open by the end of 2025 vs 43 at the end of 2024.

QoQ figures were much less impressive coming in 12% lower in Q4 vs Q3 from $19.2M down to $16.9M. Costs on the other hand went completely the other way, with direct operating costs up by 47%, Payroll up by 5% and flat G&A costs.

Happy Belly also received a substantial hit to SBC expenses, but even if we remove that non-cash item, their operational loss in Q4 was $2.4M, compared to being profitable on that line through their first nine months.

Operational cash flow also suffered in Q4, although an overall glance at the cash flow statement doesn’t look problematic. Prior to working capital adjustments, HBFG burned $1.7M, but working capital adjustments thanks mainly to a growth in Accounts Payables makes their overall OCF look better than I suggest it should.

I’m sure seasonality plays a factor in here, particularly when Heal Wellness is the company’s largest brand. But at the end of Q3, Heal had 27 restaurant locations open representing just 37% of their 73 total locations. All of those 73 (plus 4 new locations in Q4) were open for the full quarter, yet total system sales lagged by 12%. I think completely writing that off to seasonality of smoothie bowls doesn’t cut it.

There are not a lot of pure comparisons in the Canadian market place, but for what we do have is MTY, down 2.8% sequentially (likely worse due to an added week in Q4), Tim Hortons was down 6% on a QoQ basis, but A&W was up a staggering 24% in Q4 vs Q3.

I’m not suggesting by any means that investors hit the panic button, but I think there is enough here to put extra focus and a larger magnifying glass on future quarters. That means investors demanding greater detail within their quarterly MD&A’s - a better breakdown of how each brand is performing, and SSS figures as is customary within the sector. I also feel it is time for management to step up and start setting up quarterly earnings calls. The first two stocks I mentioned (NCI and ZOMD) have a combined market cap of under $100M and they produce regular earnings calls. At a $240M market cap and with some analyst coverage, it’s time to expand beyond discussions within a discord full of cheerleaders (don’t be insulted, I include myself in that statement). Sean has the personality and outgoing demeanor that would perform extremely well in that type of format, so I hope he does.

A typical review here likely would have received a 1/4 star downgrade to 3 stars - the company’s first downgrade in the four or so years I’ve been covering them.

As has been the trend thus far, Atlas Engineered Products is down from their earnings release, but modestly to the tune of 4.5%. It still remains up however by 10.3% from their selection as a 2026 Wolf Pick. That happens to be the worst performing Wolf Pick of this year’s batch with the average up 50.3% (cheap self-promotional plug).

My expectations for the first set of financials after my annual pick were mild as the company continues to integrate their two recent acquisitions and get their Ontario robotics plant up and operational. The fact the company received $4M in federal grant funds as the plant upgrade is near completion was a big welcome bonus and strengthens what was already a pretty decent balance sheet.

Aside from seeing how Atlas will be taking advantage of the seemingly improving macro conditions surrounding construction and home building (not to be confused with the poor macro real estate situation), gross margin seems to be the most central thing to watch in terms of how the company will perform in 2026.

Margins dipped to under 20 points in 2025, a decrease of nearly 500 basis points compared to 2024. So despite a 12% revenue increase during the year they brought 10% less dollars to the gross profit line. The encouraging offset is their two largest cash burning operating expense lines (Admin and Payroll) only grew by 1% in 2025, despite the fact that they added two acquisitions in the middle of the year. That continues to prove to me what I have believed for a long time - they are very good operators.

Although Atlas suffered a small $375k net income loss, they did deliver $6.25M of EBITDA, and $7.35M of operational cash flow in 2025. That leaves them trading at around a 10 EV/EBITDA, and just over 6x cash flow. They also reduced their long term debt by 17% during the year.

As we get into the first couple of quarters of 2026, my mild expectations begin to grow. They are up against two soft quarters in the first half of the year with their two non-comp acquisitions in play. The company has battled very soft macro conditions in the past couple of years. While some may not be as optimistic as I am as to that turning - when it does, I want to have a piece of one of the best operators in the sector. I believe I have that with Atlas.

Holding my 3 star rating from their November third quarter review.

We now move to a 2024 Wolf Pick and very likely the one I played the worst in the past four years - selling my stake for a modest gain just prior to their very newsworthy fall of 2025 that sent the stock from $1.30 to $3.15 in about a six week window. Unfortunately the stock has come almost all the way back closing at $1.37 on Friday. That is down about 1.5% from their most recent earnings release after an initial gap up.

I did get a little revenge recently trading the stock from $1.27 to $1.60, but as I mentioned in my April WWW, my preference would have been to be on the outside looking in when earnings came around, and that worked out to be a successful trade.

Unlike the other six in this article, Gatekeeper was the only one not delivering their 2025 annuals, ahead of the group with their Q2 of their 2026 fiscal year.

Gatekeeper killed it on the top line in Q2 with 75% more revenue, but none of that translated to the bottom line with a net loss of $315k. This compares to a net loss of $1.06M in the comparable quarter - sadly this is misstated in Gatekeepers financials as someone forgot to add parenthesis so it appears incorrectly as a net income gain.

Gatekeeper got crushed on foreign exchange with a $406k loss compared to a gain of $403k last year. An $810k bogey in this account is hard to make up for elsewhere. When you take that impact out it was a very successful quarter. Gross margin grew from 38.8% to 42.5% which delivered 92% more gross profit dollars, and the company only spent 15% more in cash burning operation expenses while driving revenue by 75%. It was a Wolf Trifecta quarter ruined by forex.

Their YTD numbers are not quite as good despite achieving 23% more revenue and improving margins by 230 basis points. Operating expenses grew by slightly more than their revenue growth (25%), but that foreign exchange bogey remains growing to more than $900k YTD. That combined to grow their net loss by 177% YTD to $1.44M.

Gatekeeper’s cash flow statement looks like it is out of a horror movie with nearly $13.8M of cash burn through six months. Now this is due to significantly reducing payables while receivables grew, so I don’t anticipate this trend to continue. It is still concerning that they are still burning cash before taking into consideration working capital adjustments. Thankfully, they have an immaculate balance sheet with a current ratio of nearly 10 and possess excellent liquidity.

Pricing Gatekeeper currently is a challenge as they have negative net income, negative $3.3M TTM EBITDA and are no longer generating operational cash flow. From a pure fundamental metrics standpoint they are way behind when I selected them as a 2024 Wolf Pick when they had a P/E of 11, an EV/EBITDA ratio of under 9 and traded at under 5x cash flow.

The outlook is potentially better than is was at the end of 2023 as the company is well positioned in a sector with a lot of growth potential. Their MDC count could get near 100,000 by year end and while that is a nice source of recurring revenue I feel this is something most retail investors do overstate the importance of.

That profitability trend line which has taken a significant hit in the past six quarters needs to turn around through better execution. I think Q2 is a decent start when the forex impact is removed. Can they continue? We’ll see.

I feel a full review would have gotten them 2.75-3 stars, which is an upgrade from the 2.5 for their 2025 annuals.

The trend of the article now begins to change, as Pharmacorp RX (PCRX.V) is up by 17% after their Q4 and 2025 annual earnings release, finally breaking out of that long buy zone I identified in my annual Wolf Pick article.

That positive share price performance was not really related to their earnings, but the news release the day after when they announced an agreement to acquire eight additional pharmacies and a pipeline of four more under LOI. The initial eight are expected to close by end the end of Q2, with the remaining four potentially by the end of Q3.

Pharmacorp only had six pharmacies to end 2025, and by the end of Q3 that number could triple to 18.

The financials they released didn’t exactly jump off the page, losing $1.42M on $20.9M in revenues, but they were operationally cash flow positive while integrating all of these new acquisitions.

They ended 2025 with a run rate of about $31M in annual revenue, so by the end of Q3 we could see this number increase dramatically to potentially $75M or more. Unfortunately the company does not include a lot of metrics for the acquired businesses, so take my Wolf math with a grain of salt.

One of the factors that attracted me initially to Pharmacorp was their ability to improve the overall operational effectiveness of the businesses they acquire and do it in a rather short time frame. Same store sales were up by 6% in Q4, and they are able to do so in both the front (retail) and back (prescriptions) of the house. The fact they can also do this while not burning cash operationally is also very attractive.

PCRX is after all a rollup story, and if we go back to one of my 2023 Wolf Picks, NowVertical, they don’t all turn out well. I’ve always maintained the easy part of a roll-up focused businesses is the acquisitions themselves - essential buying the revenue. Where most rollups fail is in the operational and synergistic integration - this is what separates the good stories from the bad ones. This among other things is why NowVertical has suffered, or arguably failed. Pharmacorp is already showing signs of doing this much better, and pretty much immediately. While PCRX is producing some operational cash flow, they aren’t producing enough to continue on this acquisition pace without dilutive measures occurring or taking on debt. That is certainly one thing retail investors interested in this company need to fully understand, and expect. Management is aggressive and I don’t anticipate they are about to slow down.

By the time NowVertical released their Q1 in 2024, a mere five months after making it an annual pick, warning signs were very evident and I exited with a profit before the bottom fell out of the stock price. I do not see any indication of those warnings signs with Pharmacorp, so I will look to add to my position when the chart dictates.

3.25 stars.

The largest logo also had the largest success story, up 36% after earnings and 41% since selecting them as my first 2026 mid year Seal of Approval pick back in February. How is that buy zone looking now?

Back in February, Biorem was one of my higher conviction plays, citing a 54% upside ($3.73) by the end of May, and we are more than three quarters of the way there.

Unlike the others, this one occurred before I left on vacation, so I’ll leave my full review below.

Thanks for taking the time to read all of that. I need to plan my European holidays a little better.

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Disclaimer:

My intent is for my reviews to be a bolt on to due diligence that you have already completed. I receive dozens of review requests a week, therefore my own DD may be great or none whatsoever. Unless otherwise stated or implied, my opinions are on the financial performance of the company based on their most recent filings. I conduct these reviews to assist other retail investors whose research skills are limited when it comes to reviewing financial statements. I do not accept compensation of any kind from company’s I review.

Wolf FINS Reviews are intended to be informational and are based on personal opinion. They are not intended to be financial advice, and all readers are encouraged to perform their own due diligence prior to their investment decisions, including discussions with their investment advisor.