Triterras (TRIRF), a fintech company specializing in commodity trade finance, has been a wild ride for investors. After a meteoric rise following its 2019 IPO, the company faced a string of controversies in 2021, leading to a dramatic stock price collapse. Trading was halted for over a year, and many believed Triterras was headed for oblivion. But then, a curious thing happened. Triterras came back. Not only did trading resume in March 2023, but the company also presented a surprisingly robust financial picture.

The provided financial data paints a picture that, on the surface, defies the narrative of a company on the brink. Triterras boasts a healthy cash position of USD 17,202,264 as of February 28, 2023, and negligible debt. Revenue for the trailing twelve months (TTM) stands at USD 60,207,088, showing a 15.4% growth year-over-year. This positive trend, coupled with their strong cash position, suggests a company that has successfully weathered the storm and is poised for a turnaround.

"However, a deeper dive into the numbers reveals a curious anomaly, something seemingly overlooked by most analysts. While revenue growth is positive, profitability remains elusive. Triterras reported a negative EBITDA of USD -28,827,240 and a net loss for the same period. This stark contrast between revenue growth and sustained losses raises a crucial question: where is the cash coming from?"

This is where the story takes an intriguing turn. Examining the company's cash flow statement, a peculiar pattern emerges. In the fiscal year 2022, Triterras received a significant cash inflow from "other cash flows from financing activities," totaling USD 139,761,857. This massive influx accounts for a significant portion of their current cash holdings.

Revenue vs. Net Income (TTM)

This chart illustrates the discrepancy between Triterras' growing revenue and its ongoing net losses.

The nature of this substantial financing activity is not explicitly detailed in the provided data. This begs for further investigation. Was it a large equity raise, a strategic investment, or perhaps an undisclosed loan? The lack of transparency raises red flags and makes it difficult to assess the long-term sustainability of Triterras' financial position.

Here's a potential hypothesis: Triterras may have secured a significant loan or a non-traditional form of financing to shore up its balance sheet and fund its operations. This would explain the company's robust cash position despite persistent unprofitability. However, the terms of such financing, including interest rates and repayment schedules, remain unknown.

This raises additional concerns about the company's future. If Triterras is heavily reliant on debt financing with unfavorable terms, its current cash surplus might be temporary. High interest payments could quickly erode their cash reserves, pushing the company back into financial distress.

Furthermore, the lack of institutional investment (only 0.026% according to the data) is troubling. Institutional investors, known for their rigorous due diligence, seem to be wary of Triterras, perhaps due to the company's past controversies and lack of transparency regarding its recent financing activities.

"Fun Fact: Triterras' founder and CEO, Srinivas Koneru, was previously involved in the rice trading industry before venturing into fintech. His deep understanding of commodity trading undoubtedly played a role in shaping Triterras' business model."

While Triterras' return from the brink might appear impressive, the story is far from over. The company's strong cash position masks underlying profitability issues and raises questions about the sustainability of its current financial health. Until Triterras provides greater transparency regarding its financing activities and demonstrates a clear path to profitability, investors should proceed with extreme caution. This "Lazarus play," while intriguing, could just as easily be a prelude to another dramatic fall.