Finjan Holdings Inc (FNJN)

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The company burned $4.5 million in cash in Q3 2015 versus $3.8 million in the June quarter. By January 15, 2016 it will receive another $2 million, and another $300,000 by March 30, 2016 from previously scheduled payments. With $7.2 million in cash as of September 30, it has just over 6 months of cash at that burn rate, although in the 10Q the company states it believes it has 12 months reserve based on what it knows. This leads us to conclude that they have a very high likelihood of new licensing deals or settlements in the next few months or they would not have put that language in the 10Q. (For now we are keeping revenues only from the consulting business in our estimate.)

Finjan reported no revenues in Q3. Operating costs for the quarter were broken down for the first time between SG&A and R&D and the two together were $4.7 million versus $3.5 million last year and up $137,000 since the June quarter of 2015 rather than down as we had expected with the Blue Coat trial over. The company ended up spending more on expert witnesses and on introducing evidence that it had expected, but costs should decline in Q4.