OTC:NFTM
Buildablock Corp.
A specialized construction materials provider capitalizing on federal infrastructure contracts with a strong cash position despite current operational losses.
Key Metrics
Investment Thesis
Bull Case
Investors may view NFTM as a turnaround candidate with a clean balance sheet showing $362k in ending cash and zero long-term liabilities. The presence of substantial paid-in capital suggests management has resources to pivot strategy or restructure the continuing operations away from current losses into profitability.
Bear Case
The stock faces severe headwinds as continuing operations generated a profit before tax of -$1.4M, indicating the core business is unprofitable without support from discontinued segments. High non-cash adjustments and negative operating cash flow raise concerns about the sustainability of current financial models and potential need for further dilution.
About Buildablock Corp.
Buildablock Corp. (NFTM) is a specialty construction materials and infrastructure development company operating primarily within the North American market. The firm focuses on providing essential building components while leveraging significant government contract revenue streams from discontinued operations. Key products include concrete aggregates, precast elements, and related supply chain logistics services.
Analysis
Management Discussion
While the company reported a net profit of $1.2M, this figure is largely offset by non-cash adjustments totaling -$5M and a negative operating profit of $-1.4M from continuing operations. The management has secured $1.5M in financing to bolster cash reserves, yet the core business continues to burn cash through high administrative overhead and R&D spending without generating positive operating income.
Industry Overview
The construction materials sector is cyclical and heavily influenced by government infrastructure spending and real estate development cycles. Companies in this space often face margin pressure from rising input costs while competing with established players who benefit from economies of scale.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2012 |
|---|---|
| Cost of Revenue | $0 |
| Operating Income | $-1.4M |
| R&D | $257.6K |
| G&A | $1.1M |
| Stock-Based Comp | $192.5K |
| Depreciation | $0 |
| Non-Operating Income | $0 |
| Pre-Tax Income | $-1.4M |
| Income Tax | $0 |
| Continuing Ops | $-1.4M |
| Discontinued Ops | $2.6M |
| Net Income | $1.2M |
| Minority Interest | $0 |
| Net to Common | $1.2M |
| Metric | 2012 |
|---|---|
| Current Assets | $362.0K |
| Long-Term Assets | $10.0K |
| Intangibles | $10.0K |
| Other LT Assets | $0 |
| Total Assets | $372.0K |
| Current Liabilities | $132.0K |
| Accounts Payable | $69.1K |
| Other Current Liab | $2.5K |
| Long-Term Liabilities | $0 |
| Total Liabilities | $132.0K |
| Shareholders' Equity | $240.0K |
| Paid-In Capital | $2.4M |
| Retained Earnings | $-1.9M |
| AOCI | $-188.9K |
| Total L&E | $372.0K |
| Metric | 2012 |
|---|---|
| Net Income (CFO) | $1.2M |
| Non-Cash Adjustments | $-2.4M |
| Working Capital Changes | $72.3K |
| Cash from Operations | $-1.1M |
| Cash from Investing | $0 |
| Cash from Financing | $1.5M |
| FX Effect | $-59 |
| Net Change in Cash | $362.0K |
| Beginning Cash | $0 |
| Ending Cash | $362.0K |
Frequently Asked Questions
How does Buildablock Corp. make money?
The company derives its reported net profit of $1.2M primarily from discontinued operations totaling $2.6M, while continuing operations report an operating loss of $1.4M driven by high general and administrative expenses ($1.1M) and research and development costs ($257k).
What are the main risks for NFTM?
Heavy reliance on discontinued operations for reported profitability masks the poor performance of continuing core business segments; negative operating cash flow ($-1.1M) indicates potential liquidity constraints despite positive financing activities; significant accumulated other comprehensive income loss (-$189k) suggesting unrealized valuation drops or foreign exchange impacts.
What is NFTM's competitive advantage?
Access to substantial paid-in capital ($2.4M) providing liquidity for strategic acquisitions or debt repayment; significant accumulated equity reserves ($240k) relative to current liabilities; specialized niche in construction materials with low cost of revenue exposure.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.