Before putting a financing into a forecast, finish this sentence: “This calculation concerns…” Give the answer a specific obligation or right, an amount and a document date. A spreadsheet can divide perfectly while answering the wrong question. The useful first step is deciding what the answer will represent.
Company
Dr. Phone Fix’s August 31, 2026 results release described a Canadian device-care business with 44 corporately owned locations across five provinces at June 30. Its activities included repair, refurbishment and certified pre-owned devices. That is a dated operating snapshot, not a statement of today’s store count.
Its May 19 financing announcement proposed up to $2.5 million gross, with intended uses including acquisitions, new stores, national expansion and working capital. Those plans do not establish where the proceeds were actually spent. We retain the releases’ unqualified $ symbol rather than assign a currency.
Chronology
The August release reported a July 17 second tranche of $726,000 and approximately $1.61 million in aggregate with the June tranche. The later report is evidence about those issuance events; it is not another receipt to add to them.
A September 25 closing release reported 1,608 units and $1.608 million aggregate gross proceeds, with final TSXV acceptance still pending. Gross proceeds are not net cash available to spend: the release also disclosed cash finder fees. Do not turn the report’s date into an assumed new funding date.
The October 16 disclosure described an October 8 amendment of June 24/July 17 debentures, still requiring TSXV acceptance.
Rights
May’s terms paired each $1,000 of unsecured convertible debt with 3,125 warrants. They described 10% annual interest, payable annually, and holder-elected principal conversion at $0.16 before maturity, 24 months from issuance. The warrant was a separate holder right exercisable at $0.22; no exercise is established here.
October’s release left the principal conversion price unchanged.
For accrued, unpaid interest, the holder may elect conversion at the TSXV closing share price on the trading day before notice, subject to that day’s TSXV-defined Market Price floor. Notice must arrive within five trading days before interest is payable, including on principal conversion, when the notices accompany each other. Share issuance requires prior TSXV acceptance. Unconverted or unaccepted interest is paid in cash.
October 16 amendment disclosure
Warrant exercise is separate from settling the interest obligation.
The May announcement does not supply an old interest-pricing formula for a before-and-after calculation.
One fictional interest amount, two share counts
This Meadow example is wholly fictional. Meadow is a fictional company owing 100 currency units of interest. Its prices and obligations are teaching assumptions, not observations of real company terms, market prices or an exchange eligibility calculation. There is no principal conversion or warrant exercise in this example.
Assume valid creditor election, required approvals and completed share issuance satisfying Meadow’s interest.
Compare two alternative eligible prices: 0.20 currency units per share and 0.50 per share. Each is stipulated to be available in its own scenario. Neither is a predicted price. We use whole-share results and set aside fees, tax and rounding. The interest amount is identical in both alternatives. We are changing only the divisor.
At 0.20, the calculation is 100 ÷ 0.20 = 500 shares. At 0.50, it is 100 ÷ 0.50 = 200 shares. A useful cross-check runs backwards: 500 × 0.20 and 200 × 0.50 both give 100 currency units. The share numbers differ even though the amount being satisfied does not.
The first scenario uses 2.5 times as many shares as the second. That ratio describes these two share counts. It is not an ownership percentage, a change in enterprise value or a claim that the interest amount increased. No existing share count or ownership denominator has been supplied, so an ownership calculation has no answer in this exercise.
Keep the scenarios in separate columns. Adding 500 and 200 would invent a third outcome in which both alternatives happened. Choosing 200 because it looks more comfortable would replace an assumption with a preference. Record which price belongs to which scenario, then preserve the corresponding result. The arithmetic should expose the choice being tested, not quietly make it.
If election or approval is absent, assume Meadow owes 100 currency units in cash. Neither successful share-settlement alternative then occurs.
Cash forecast
Before changing Dr. Phone Fix’s cash forecast, establish valid election, relevant acceptances and completed settlement under operative terms. Actual outcomes remain unobserved here.
For Meadow’s worksheet, attach the assumed scenario to the forecast line it changes. Write down the amount, settlement date, evidence still needed and person responsible for updating it. Keep the last version so a reviewer can see why the cash column changed. A blank evidence field should remain visibly unanswered; do not quietly copy yesterday’s assumption into it.
Then ask someone else to reproduce the result from the inputs alone. They should reach 500 or 200 shares in the corresponding successful scenario, and 100 currency units in the cash branch. If they cannot tell which branch they are checking, improve the labels before adding more decimal places. That is a useful output from this exercise: a forecast change another person can trace.
For general information and education, not legal, tax, investment or valuation advice. The fictional example is illustrative; reported transactions do not predict your business’s value, financing terms or sale outcome. Consult qualified advisers about your situation.
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