.<font color=red>DIOM assets, Liabilities, shareholder, etc____
morcash: Your math seems rather odd to me. Let me have a stab at it
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==Liabilities:
$17.475M = as of 30-Sep-07 (could be higher now!)
$0.5M = add prepayment penalty (3%) and default interest on $5M loan
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==Current Assets:
$16.472M = as of 30-Sep-07 ($7.4M cash)
$7M = ANGO settlement
$3.6M = Vasc Solutions settlement
==Subtract Operating cost from Assets
$7M = business as usual burn rate for 2Q's (assume $3.5M per Q before BK)
$1M = Assume 1Q reduced burn rate (during BK)
$?? = Net Receivables never Received/write off (who knows has to be less than $3M but lets not add it since we don’t know?)
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Estimated Total Liabilities = $17.975
Estimated Assets = $19.072
IF, and I say a huge *IF* DIOM sells all its current assets at the value on the balance sheet then you looking at a possibility of $1.097M going to PREFERED stock holders (not common holders). common shareholders are left with nothing.
I have never seen current assets sold at the actual value. During a BK assets are normally sold at a nice discount or "Fire sale" prices. Even if DIOM sold all its assets with only a 10% discount then the value would be less than the liabilities and you get no money. shareholders are left with nothing.
From the most recent PR it looks like DIOM sold its assets (except "certain patents") for $11M. Patents are "Intangible Assets" and without knowing which ones they sold or how many lets assume they still own 100% of the $3.652M on the balance sheet ("Intangible Assets").
This looks to me like the most the company can get for its assets is $11M + $3.652M = $14.652M. This is less than the total debt and common shareholders are left with nothing. Remember I am giving DIOM the benefit of the doubt. Thais means that DIOM will sell its assets at a 23% discount.
I think I am being extremely fair and reasonable in this logic. Does any one disagree? I do not see a single situation where DIOM come out green. If they were green then they might consider withdrawing the BK petition right?
-Mike
*Disclaimer: My post are possibly fictional and/or are my opinion. I assume no liability, nor do I guarantee any stock's performance. Please do your own due diligence.
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