KOO - You asked me about the cash situation and I have finally got around to looking at it. After you asked, someone posted some info. from the MD&A that answered a lot of it. It isn't pretty but I will try to delve deeper. To your query of the $19.805mm gain on the warrant liability, the short answer is no, not more cash due to this. Warrant liability is a non-cash calculation done each reporting that is very volatile and has numerous items included using the Black-Scholes formula for calculating options. Share price is a big portion so you can understand the volatility. Due to this non-cash item, RVX actually had a profit of $3.959mm in Q1/20 and paid tax. I think we all know they didn't turn a profit and they have lots of tax credits to cover the small tax bill but that is how you have to report to CRA. For fiscal 2019, RVX lost $162.769mm while I think they actually only went through about $40mm. Most of the rest is all non-cash revaluation of warrant liability and Royalty Preferred Shares owned by Zenith. They are a liability now but can swing to revenue as exercised and create good tax credits. The RPShares cut into RVX profits in the future so a liability.

Cash on hand at July 31 was US$7.356mm plus Zenith owed RVX US$1.088mm. Hard to say when the Zenith money will be received. Payables of US$7.832mm was owed which cancels the cash. I fear too often payables get looked at as a fixed number like a loan but some have to be paid all of the time. Probably about a third off the back gets paid each month and a new amount somewhat equal adds on the front so probably 1/3 gets paid each month just to keep it where it is. To support that idea, one can look back to see that in recent times, it stays around $8mm each quarter. Eastern Capital exercised 5mm warrants @ $0.75 in August generating $3.75mm to RVX. 

Debt was listed as US$15.108mm which would have been US$14.5mm principle and $0.6mm exit fee to Third Eye. After July 31, RVX paid Third Eye $3mm plus $150,000 in extension fees and interest for August and Sept. would be almost $240,000. This all adds up to $15.5mm (including the $3mm) that they would have had to pay Third Eye after July 31. Subtracting the $3mm left $12.5mm to pay Third Eye on Sept. 27 and they only raised $12mm from ORI. 

They say the three months to July 31 had a burn rate of $2.8mm. From what I have found the burn rate just includes R&D and Admin, etc. costs and not financing, etc. which is costs you still have to pay. The statements say net cash used in operations was $10.052mm which equals a burn of $3.35mm/month. 

Adding this up I get:

$  7.356mm  Cash

    3.750mm  Eastern Capital

   (3.000mm)  Paid to Third Eye at extension

   (0.500mm)  Shortfall from ORI to pay Third Eye Loan

   (6.700mm)  Two months cash burn (this should drop but not sure how soon as still BoM bills to                           pay off) August and September This might be a little less if interest is paid to ORI                           at maturity.

____________

$   0.906mm    Cash and still have payables around $8mm

Over the next year, they also have to raise $13.2mm including interest to pay off ORI. They had to pay Third Eye interest monthly but it appears maybe all to ORI at maturity, conversion or redemption. Maturity is one year, Ori can convert to shares when they want but any shares from conversion before 4 months can't be sold before 4 months. If RVX comes into money, they can redeem if approved by Ori by RVX giving 60 days notice and 15 days for Ori to give approval. Ori can not convert the $12mm to more than 52,355,011 shares. That is about $0.23/share if the price drops that low. This will safeguard a little against a price collapse to say $0.05 and them converting to 240mm shares or doubling the number in circulation. 

As far as the Commitments that were posted earlier by someone else, I think those might fit mostly into existing burn rate. They said RVX is committed over 12 months to $7.5mm in R&D contracts. One year ago in the statements, that was $8.1mm so seems to be consistant. It also said they are committed to $9 - 12 million to Research Organizations  & labs. I assume this might be a lot of BoM costs that they have been paying some all along and this fits into the burn. One year ago, this was $18 - 23 mm and more the year before that. It is coming down as you might expect as they clean up outstanding bills for BoM. 

On an old topic, to put it to rest. It appears that there might have been some bad wording in what was reported to us regarding the Hl ROFR. Maybe the word termination got used in too many places when maturation should have been used. I was understanding that when maturity passed last April, if no deal had been made it would expire like a warrant and the $8mm would belong to RVX. It was pointed out to me that it actually said that RVX would owe that back to HL and I couldn't argue with what the wording said. It seemed wrong but was what it was saying. It appears that the agreement was what it always should have been and was just not worded well. The date of maturity came and went without any deal and the $8mm was deemed earned and moved from where it had been in accounting as a liability to Other Income.