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10-Q http://biz.yahoo.com/e/141114/wsgi10-q.html
14-Nov-2014
Quarterly Report
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
This Quarterly Report on Form 10-Q, including this Management's Discussion and Analysis of Financial Condition and Results of Operations, contains forward-looking statements regarding future events and our future results. All statements other than statements of historical facts are statements that could be deemed forward-looking statements.
Certain statements in this Quarterly Report on Form 10-Q may contain words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," "may," "could," "would" and other similar language and are considered forward looking statements or information. In addition, any information or statements that refer to expectations, beliefs, plans, projections, objectives, performance or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking, and based on our current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which we operate. Such forward-looking information or statements are subject to important assumptions, risks and uncertainties that are difficult to predict, and the actual outcome may be materially different. Our assumptions, although considered reasonable by us at the date of this Report, may prove to be inaccurate and consequently our actual results could differ materially from the expectations set out herein.
We undertake no obligation to revise or publicly release the results of any revisions to these forward-looking statements or information. You should carefully review documents we file from time to time with the Securities and Exchange Commission. A number of factors may materially affect our business, financial condition, operating results and prospects. These factors include but are not limited to those set forth in our Annual Report on Form 10-K and elsewhere in this Quarterly Report on Form 10-Q. Any one of these factors may cause our actual results to differ materially from recent results or from our anticipated future results. You should not rely too heavily on the forward-looking statements contained in this Quarterly Report on Form 10-Q, because these forward-looking statements are relevant only as of the date they were made.
The following MD&A is intended to help readers understand the results of our operation and financial condition, and is provided as a supplement to, and should be read in conjunction with, our condensed consolidated financial statements and the accompanying Notes to Condensed Consolidated Financial Statements under Part I, Item1 of this Quarterly Report on Form 10-Q.
Growth and percentage comparisons made herein generally refer to the three and nine months ended September 30, 2014 compared with the three and nine months ended September 30, 2013 unless otherwise noted. Unless otherwise indicated or unless the context otherwise requires, all references in this document to "we," "us," "our," the "Company" and similar expressions are references to World Surveillance Group Inc. and, depending on the context, its subsidiaries.
General
We design and develop autonomous lighter-than-air (LTA) unmanned aerial systems (UAS) designed to carry payloads that provide semi-persistent intelligence, surveillance and reconnaissance (ISR), security and/or wireless communications from air to ground solutions at low and mid altitudes. Our business focuses primarily on the design and development of innovative UAS that are designed to provide situational awareness and other communications capabilities via the integration of wireless capabilities and customer payloads. Our airships when integrated with cameras, electronics systems and other high technology payloads, are designed for use by government-related and commercial entities that require real-time ISR or communications support for military, homeland defense, border control, drug interdiction, natural disaster relief, maritime and environmental missions.
Through our wholly owned subsidiary Global Telesat Corp. (GTC), we provide mobile voice and data communications services globally via satellite to the U.S. government, defense industry and commercial users. GTC specializes in services related to the Globalstar satellite constellation, including satellite telecommunications voice airtime, tracking devices and services, and ground station construction. GTC has an e-commerce mobile satellite solutions portal and is an authorized reseller of satellite telecommunications equipment and services offered by other leading satellite network providers such as Inmarsat, Iridium, Globalstar and Thuraya. GTC also has a subscription based online tracking portal called GTCTrack, designed to attract new satellite and GSM tracking customers by offering an easy-to-use interface and compatibility with a wide range of devices. GTC's equipment is installed in various ground stations across Africa, Asia, Australia, Europe and South America.
On September 22, 2008 we filed a Certificate of Merger with the Secretary of State of the State of Delaware pursuant to which our newly formed wholly-owned subsidiary, Sanswire Corp., a Delaware corporation, was merged into us and our corporate name was changed from GlobeTel Communications Corp. to Sanswire Corp. Effective April 19, 2011, we merged a newly created, wholly-owned Delaware subsidiary, World Surveillance Group Inc., with and into the Company, with the Company being the surviving corporation. Our Restated Certificate of Incorporation is the charter of the surviving corporation except that our name has been changed to World Surveillance Group Inc. In connection with the change of our corporate name, effective April 25th our stock ticker symbol, under which our common stock is now traded, was changed to "WSGI".
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On May 25, 2011 we completed our acquisition of privately-held Global Telesat Corp. We acquired 100% of the issued and outstanding securities of GTC, making GTC a wholly owned subsidiary of the Company. GTC supplies satellite based tracking and communication solutions to government, defense and commercial customers.
On March 28, 2013 we completed our acquisition of privately-held Lighter Than Air Systems Corp. We acquired 100% of the issued and outstanding securities of LTAS, making LTAS a wholly owned subsidiary of the Company. On May 5, 2014, we exchanged 100% of the outstanding stock of LTAS for a cash payment of $335,000 and 10,000,000 shares of common stock of Drone Aviation Corp. (DAC). For purposes of this Form 10-Q, our financial statements reflect the accounts and operations of LTAS as discontinued operations. Following the LTAS sale, we intend to refocus our efforts on our Argus One program and GTC's business. The DAC shares were converted into 10,000,000 share of Series D Convertible Preferred stock (the "Preferred Shares") of Drone Aviation Holding Corp. (DAHC) on June 3, 2014. The Preferred Shares are convertible on a one-for-one basis into common shares of DAHC and are recorded as an asset of the Company. The Preferred Shares were valued at $9,000,000 based upon the closing price of DAHC common stock on June 30, 2014. As a result of the sale of LTAS, WSGI received cash for working capital and shares in DAHC, which will allow WSGI to hopefully benefit in the future success of the LTAS business.
Our current principal office is located at State Road 405, Building M6-306A, Room 1400, Kennedy Space Center, FL 32815, and our telephone number at that location is (321) 452-3545. Our internet address is www.wsgi.com. Information contained on our website is not a part of this report and the inclusion of our website address in this report is an inactive textual reference only.
Results of Operations
Comparison of Three Months Ended September 30, 2014 and 2013
Revenues. Revenues for the three-months ended September 30, 2014 were $476,981 compared to $428,668 for the three-months ended September 30, 2013 reflecting an increase of $48,313 or 11.3%. The increase in revenues during the 2014 period resulted primarily from an increase in the volume of GTC website and Amazon/eBay stores sales.
Cost of Sales. The cost of sales for the three-months ended September 30, 2014 was $351,733 compared to $412,579 for the three- months ended September 30, 2013 reflecting a decrease of $60,846 or 14.7%. The decrease in cost of sales during the third quarter of 2014 is attributed to the greater GTC website and Amazon/eBay stores sales volume and higher margin product mix.
Operating Expenses. Operating expenses consist primarily of compensation, professional fees, research and development, as well as expenses for executive and administrative personnel, insurance, facilities expenses, travel and related expenses, depreciation and amortization and other general corporate expenses. Operating expenses for the three-months ended September 30, 2014 were $411,899 compared to $864,216 for the three-months ended September 30, 2013. The decrease of $452,317, or 52.3%, resulted primarily from decreased general and administrative expenses of $443,918 compared to the third quarter of 2013. The decrease in general and administrative expenses is primarily attributable to reductions in vested share-based compensation and accrued salaries of approximately $437,000 during the third quarter of 2014.
Loss From Operations. The loss from operations of $286,651 for the three-months ended September 30, 2014 compares to a loss from operations of $848,127 for the three-months ended September 30, 2013. The decreased loss of $561,476, or 66.2%, is primarily attributable to the increased GTC sales and reductions in compensation described above.
Net Other Income (Expense). Interest expense totaled $118,410 for the three-months ended September 30, 2014 compared to interest expense of $111,469 for the three-months ended September 30, 2013, an increase of $6,941, or 6.2%.
Net Loss from Continuing Operations. The net loss from continuing operations of $405,061 for the three-months ended September 30, 2014 compared to net loss from continuing operations of $959,596 for the three-months ended September 30, 2013, a decreased loss of $554,535, or 57.8%. This decreased loss reflects the increase in GTC sales and the decrease in compensation during the quarter ended 2014 described above.
Other Comprehensive Income (Expense). We received 10,000,000 shares of Drone Aviation Corp. common stock as part of the proceeds from the sale of LTAS on May 5, 2014. These shares were converted into 10,000,000 shares of Series D Convertible Preferred Stock of Drone Aviation Holding Corp. (the "DAHC Stock") on June 3, 2014, which are convertible into shares of DAHC common stock. We recorded the DAHC Stock as available-for-sale securities, although the shares are subject to a contractual 15-month lock-up provision, we will be able to sell a certain volume of shares in months 13 through 15. We have elected to value the DAHC Stock at fair value using the DAHC common stock closing price at the end of each reporting period. On September 30, 2014, the DAHC Stock held by the Company was valued at $3,720,000 and is recorded as an asset. We will record changes in fair value of the DAHC Stock as Other Comprehensive Income (Expense), which is reported separately from Net Loss as it represents income (expense) outside the control or influence of our operations.
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Comparison of Nine-Months Ended September 30, 2014 and 2013
Revenues. Revenues for the nine-months ended September 30, 2014 were $1,306,386 compared to $1,192,150 for the nine-months ended September 30, 2013 reflecting an increase of $114,236 or 9.6%. The increase in revenues during the 2014 period resulted primarily from increased sales volume from the GTC website and Amazon/eBay stores. Revenues during the nine-months ended September 30, 2013 included the sale of a BiB aerostat system by GTC for $302,703. Sales generated by GTC's website and Amazon/eBay stores during the nine-months ended September 30, 2014 increased $416,939 or 46.9% over the same period of 2013.
Cost of Sales. The cost of sales for the nine-months ended September 30, 2014 was $979,663 compared to $912,178 for the nine-months ended September 30, 2013 reflecting an increase of $67,485 or 7.4%. The increase in cost of sales during the nine-months ended September 30, 2014 is attributed to the higher GTC website and Amazon/eBay store sales volume.
Operating Expenses. Operating expenses consist primarily of compensation, professional fees, research and development, as well as expenses for executive and administrative personnel, insurance, facilities expenses, travel and related expenses, depreciation and amortization and other general corporate expenses. Operating expenses for the nine-months ended September 30, 2014 were $1,936,787 compared to $2,009,297 for the nine-months ended September 30, 2013. The decrease of $72,510 or 3.6%, resulted primarily from decreased general and administrative expenses of $102,878, which reflects lower share-based compensation and accrued salaries during the nine-months ended September 30, 2014.
Loss From Operations. The loss from operations of $1,610,064 for the nine-months ended September 30, 2014 compares to a loss from operations of $1,729,325 for the nine-months ended September 30, 2013. The decreased loss of $119,261 or 6.9%, is primarily attributable to the lower share-based compensation awarded or vesting and salary expense during the nine-months ended 2014.
Net Other Income (Expense). Net other expense totaled $793,800 for the nine-months ended September 30, 2014 compared to net other expense of $613,004 for the same period ended September 30, 2013, an increased loss of $180,796 or 29.5%. Net other expense for the nine-months ended September 30, 2013 included $233,381 in losses from conversion agreement true-up, which are no longer being incurred in 2014. Net other expense for the nine-months ended September 30, 2014 included $443,183 in losses from sale of discontinued operations, which didn't incur in 2013.
Net Loss from Continuing Operations. The net loss from continuing operations of $2,403,864 for the nine-months ended September 30, 2014 compared to net loss from continuing operations of $2,342,329 during the nine-months ended September 30, 2013, an increased loss of $61,535 or 2.6%, reflects the increase in GTC sales volume, the reduction in vested share-based compensation and salary expense, and the discontinuation of the loss from conversion agreement true-up, described above offset by the loss on sale of discontinued operations.
Other Comprehensive Income (Expense). We received 10,000,000 shares of Drone Aviation Corp. common stock as part of the proceeds from the sale of LTAS on May 5, 2014. These shares were converted into 10,000,000 shares of Series D Convertible Preferred Stock of Drone Aviation Holding Corp. ( the "DAHC Stock") on June 3, 2014, which are convertible into shares of DAHC common stock. We recorded the DAHC Stock as available-for-sale securities, although the shares are subject to a contractual 15-month lock-up provision, we will be able to sell a certain volume of shares in months 13 through 15. We have elected to value the DAHC Stock at fair value using the DAHC common stock closing price at the end of each reporting period. On September 30, 2014, the DAHC Stock held by the Company was valued at $3,720,000 and is recorded as an asset. We will record changes in fair value of the DAHC Stock as Other Comprehensive Income (Expense), which is reported separately from Net Loss as it represents income (expense) outside the control or influence of our operations.
Liquidity and Capital Resources
Assets. Our cash balance was $5,021 at September 30, 2014 compared to $8,907 at December 31, 2013, reflecting a decrease of $3,886. Accounts receivable increased $34,036 at September 30, 2014 compared to September 30, 2013 reflecting a higher volume of credit sales from GTC's website. Total assets at September 30, 2014 excluding discontinued operations were $6,143,786 compared to $2,459,695 at December 31, 2013, reflecting an increase of $3,684,091 due principally to the fair value of the 10,000,000 shares of DAHC Stock. The DAHC Stock is subject to a 15-month lock-up provision, although we will be able to sell a certain volume of DAHC Stock in months 13 through 15. The Company has elected to record the DAHC Stock as available-for-sale securities and value them at fair value using the DAHC common stock's closing price at the end of each reporting period. On September 30, 2014, the DAHC Stock was valued at $3,720,000. Fair value adjustments are recorded as Other Comprehensive Income (Expense) in the Statements of Comprehensive Income and listed separately as a component of Stockholders' Deficit on the Consolidated Balance Sheets.
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Liabilities. At September 30, 2014, the Company had total current liabilities excluding the discontinued operations of $17,292,275 compared to $16,816,772 at December 31, 2013, an increase of $475,503 or 2.8%. This increase is primarily attributable to the increases in accrued interest capitalized in notes payable of $266,152 and other accrued liabilities of $196,507.
Cash Flows. Net cash used by operating activities in continuing operations during the nine-months ended September 30, 2014 was $493,886 compared to net cash used by operating activities of $577,423 for the same period in 2013, a decrease of $83,537, primarily reflecting a reduction in net loss.
Net cash provided by investing activities in continuing operations for the nine-month period ended September 30, 2014 included the cash proceeds from the sale of LTAS of $335,000 less $10,000 paid in attorney fees. There were no cash flows from investing activities from continuing operations for the nine-months ended September 30, 2013.
Net cash provided by financing activities in continuing operations was $165,000 and $20,000 during the nine-months of 2014 and 2013, respectively. During the nine-months ended September 30, 2014, we received $215,000 in proceeds from the sale of common stock and paid-off a $50,000 unsecured promissory note with accrued interest. During the nine-months ended September 30, 2013, we received $120,000 from the sale of common stock, $150,000 in proceeds from the issuance of two short-term unsecured promissory notes and paid $110,000 against the LTAS acquisition payable and $140,000 to the LTAS shareholder.
Pursuant to a Stock Purchase Agreement relating to our acquisition of GTC in May 2011, the purchase price includes an earn-out equal to 5% of the gross revenues related to the construction by GTC of certain potential satellite ground stations. These earn-out payments are unlikely to materially impact our liquidity and capital resources since payments are required to be made to the former shareholder of GTC by us only upon the actual receipt of cash from a customer related to a ground station construction contract. The earn-out payments would have the effect of reducing our margin on any such contract. We are obligated to make these earn-out payments until the earlier of May 25, 2036 or the date on which GTC no longer has the right to construct ground stations under the applicable agreement with Globalstar.
The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. However, as reflected in the accompanying condensed consolidated financial statements, the Company incurred a loss from operations of $1,610,064 for the nine-months ended September 30, 2014. The Company also had a working capital deficit of $17,008,096 and total stockholders' deficit of $11,148,489, as well as an accumulated deficit of $154,823,252 at September 30, 2014. These factors raise substantial doubt about the Company's ability to continue as a going concern. The Company's ability to continue as a going concern is dependent upon its ability to raise additional funds either through investments or by generating revenue from the sale of the Company's products to continue its business operations and implement its strategic plan, which includes, among other things, continued development of its UAS, the pursuit or continued development of strategic relationships and expansion of the Company's subsidiary's business. The Company's business plan, which if successfully implemented, will allow it to sell UAS and other products for a profit, which in turn will reduce the Company's dependence on raising additional funds from outside sources. The condensed consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. The Company anticipates a net loss to continue for at least the next several quarters.
Additional cash will be needed to support our ongoing operations until such time that operations provide sufficient cash flow to cover expenditures. We are currently pursuing both short and long-term financing options from private investors as well as through institutional investors. We are also working to commercialize our aerostats, Argus One airship, and our subsidiary's products to generate revenues from customers. While we have not sold any of our Argus One airships, we are already generating revenue from our subsidiary's products. The costs associated with our strategic plan are variable and contingent on our ability to raise capital or generate revenue from customer contracts, but we expect to need funding of approximately $3 million over the next 12 months. We are currently in litigation with La Jolla Cove Investors and do not expect any future funding under those agreements. We continue to have discussions with various entities relating to funding, but there can be no assurance that such funding will be received in the amounts required, on a timely basis, or at all. While we believe we will be able to continue to raise capital from various funding sources in such amounts sufficient to sustain operations at our current levels through at least the next several quarters, if we are not able to do so and if we are not able to generate sufficient revenue through the sale of our products, we would likely need to modify our strategy or cut back or terminate some of our operations. If we are able to raise additional funds through the issuance of equity securities, substantial dilution to existing shareholders may result. However, if our plans are not achieved, if significant unanticipated damaging events occur, or if we are unable to obtain the necessary additional funding on favorable terms or at all, we will likely have to modify our business plan and reduce, delay or discontinue some or all of our operations to continue as a going concern or seek a buyer for all or a portion of our assets. As of the date hereof, we continue to raise capital to sustain our current operations.
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Off-Balance Sheet Arrangements
We do not enter into off-balance sheet financing as a matter of practice except for the use of operating leases for office space; none of which have, or potentially may have, a material effect on our financial condition, revenue, expenses, results of operations, liquidity, capital expenditures or capital resources. In accordance with U.S. GAAP, these leases do not meet the criteria for capitalization and are recorded as operating leases.
Critical Accounting Policies and Use of Estimates
Our Management's Discussion and Analysis of Financial Condition and Results of Operation is based upon our condensed consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). The preparation of our condensed consolidated financial statements in accordance with U.S. GAAP requires us to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements, the reported amounts and classification of revenues and expense during the periods presented, and the disclosure of contingent assets and liabilities. We evaluate our estimates and assumptions on an ongoing basis and material changes in these estimates or assumptions could occur in the future. Changes in estimates are recorded in the period in which they become known. We base our estimates on historical experience and various other assumptions that we believe to be reasonable under the circumstances and at that time, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ materially from these estimates if past experience or other assumptions do not turn out to be substantially accurate.
Please refer to our Note 1 of our condensed consolidated financial statements contained in this Quarterly Report on Form 10-Q, and our Management's Discussion and Analysis of Financial Condition and Results of Operation contained in Part II, Item 7 of our Annual Report on Form 10-K for our fiscal year ended December 31, 2013 and Note 1 of our consolidated financial statements contained therein for a more complete discussion of our critical accounting policies and use of estimates.
The slide deck and the audio can be found on http://investor.oxigene.com/index.cfm under Events & Presentations if anyone is looking for it.
I just went through the slide deck that was used for the presentation. It's very similar to the one they've used previously.
Don't get too caught up with the fully funded and no debt talk. While true, the reason for that is because the company has a history of using stock to fund the company. Then when the number of shares starts getting out of control, they issue a reverse split. I don't know if that trend will continue, but the stock chart hasn't looked pretty once you factor in all those reverse splits.
The technology seems like it is very easy to understand, very effective, very targeted, and fulfills a dire need. But sales won't come until testing is complete. Hope they're working on that now.
If they set up a videocast or an audiocast, I will definitely attend remotely, but the current value of my investment isn't worth purchasing a flight and hotel.
I look forward to reading reports/perspectives from anyone who attends. Thanks in advance.
Based on company history and the stock chart since inception, I would say disaster. But the company does appear to have a treatment close to gaining marketing approval (for ATC) and a potential blockbuster treatment just getting started with testing (OXi4503 for Acute Myelogenous Leukemia). So this is your typical boom or bust, news-driven stock. I wouldn't bet the house, but it could be exciting (and frustrating) to watch over the next few years.
Another increase to shares outstanding:
http://finance.yahoo.com/news/oxigene-inc-announces-16-million-130000685.html
At least this is a near market price offering. I hope the day comes soon when product sales will support operations instead of stock sales.
"We anticipate major catalysts from leading drug candidate Zybrestat to attract investors before year-end: details of the positive median progression-free survival (mPFS) results from a Phase II ovarian cancer trial could lead to a registrational Phase II/III trial in 2015, and guidance from the EMA on a registration pathway under an Exceptional Circumstances provision in anaplastic thyroid cancer (ATC) could lead to an MAA filing in early 2016," said Zavoico.
"Our valuation reflects our confidence in Zybrestat's potential in ovarian cancer and our projected ATC approval in E.U. in 2016. We use a discounted P/E model applied to our projected diluted 2020 EPS for Zybrestat sales revenue in ovarian cancer and ATC. We selected a 40% discount rate based on current risks (PFS benefit in ovarian cancer has not been reported in detail, uncertain EMA guidance on ATC registration based solely on FACT results), and a 25x P/E multiple to arrive at our one-year price target of $7.50 per share. Surprise upsides include positive development of OXi4503 and Zybrestat for other indications not included in our valuation," he added.
For anyone wanting to see the source, Google HC Wainwright OXGN.
A new research firm initiated coverage of OXGN with a buy rating:
http://finance.yahoo.com/q/ud?s=OXGN
OXiGENE sold stock/warrants:
http://seekingalpha.com/news/1564341-oxigene-sells-12m-in-warrants-shares-crumble
Anyone have any opinions on what the latest news means for OXiGENE shareholders?
Confidentiality Treatment Order - http://www.sec.gov/Archives/edgar/data/908259/999999999714007290/9999999997-14-007290-index.htm
Preclinical study results - http://finance.yahoo.com/news/oxigene-announces-results-promising-preclinical-130000121.html
I like how InTheTrenches used ECYT as a comparable. Looking at ECYT, they appear to be 2 years removed from where OXGN is now. So in 2 years, OXGN should have a similar market cap to ECYT (in my opinion). That is, of course, assuming acceptance and a similar sales track. OXGN appears to have a better mousetrap, so to speak, so they may even exceed ECYT's current market cap.
So to make a guess at a stock price 2 years from now, you would have to divide the market cap guess (for argument's sake, say ECYT's current market cap) by a guess at how many shares will be outstanding then. I wouldn't be surprised if OXGN has roughly 50 million shares outstanding 2 years from now. So $20/share within 2 years if we track like ECYT?
I'm just throwing out a guess; feel free to have alternate projections. You guys probably know this company and comparable companies better than I do.
Seeking Alpha article about OXiGENE out:
http://seekingalpha.com/article/2108163-oxigene-incorporated-an-undervalued-opportunity-in-biopharmaceuticals?source=yahoo
Thanks Lobo Solitario. The treatment obviously appears to work as intended. I'm guessing the survival duration and progression-free survival rate would be even higher if patients were given the treatment a little earlier. The 70% reduced blood flow to the tumors shows it was working; it just didn't have enough time to complete its work for many of the patients.
At this point, I see this stock as a (somewhat exciting) spec play. Per the powerpoint on OXiGENE's website, I don't see significant revenues until 2016.
That doesn't mean the company doesn't have value though. Every trial passed is a step closer to sales and profits for this company (assuming a larger company doesn't buy it out first). I'll be more interested in the conference call dialogue than the actual numbers. Hopefully, we'll be given additional hints on future tests and treatment pipelines.
I agree. Other than stating the obvious; that the Red Cross wants to continue to do business, it doesn't really give us an indication of magnitude.
I'm not surprised by this though. Many open-ended agreements like this are on a graduated scale. So much per device, then X amount for servicing the first 100 devices, 95% of X for the next 100 devices, and so on. The more the Red Cross uses, the less the incremental cost. I don't know that this is the case here, but that is my guess.
First military, then police, next news/traffic? I'm guessing a BIB-100 would have to be cheaper than a helicopter being sent up ten times a day to show how traffic is flowing.
Every $88,000 helps.
If DRS is getting $92M - $269M depending on options, and WSGI is the subcontractor for this particular contract, the revenues coming WSGI's way could be significant. I hate that little word "if", but Nil's two links do fit together nicely giving plausibility to the "if".
The Ecker Yacht Race doesn't start for another 2 months, so any revenues from that won't be realized until then:
http://www.eckeryachting.com/ecker_cup_ziel.html?&L=1
Since both the contracts you mentioned originated in May, they may very well have not been realized by the end of the quarter either. I assume if/when they are completed, that we'll hear about it one way or another.
You are correct that the box is nowhere near the 5 feet tall I assumed; probably more in the 2-3 feet range.
The helium in the 5 tanks using Jet's dimensions still takes up the same space. There is less space left over, but still plenty IMO.
Just think logically. The tanks (or a single larger tank) occupy the bottom of the box to a heighth of 9.25". The remainder of the box is available for the blimp and the tether.
Thanks sirwolf - great pics! It looks like the height of the box can expand by adding more layers, with each layer being maybe 15" (guessing by the picture). The height of the two layers used is smaller than I anticipated, but it is good to see that it can adapt so easily if a larger box is needed.
Thanks for the correction - you are correct; cubic inches. I updated the post to state the correct term. I also squared off the tank, but thought that was appropriate since we are looking at usable space remaining.
Exactly, so the box can easily hold your 5 helium tanks at your dimensions and still have room in the box remaining for the blimp and tether (probably with room to spare).
Your dimensions:
9.25" long X 9.25" wide X 55" high X 5 tanks = 23,530 cubic inches.
The box (assuming 5 feet tall):
72" long X 48" wide X 60" tall = 207,360 cubic inches.
Your 5 tanks only occupy 11.35% of the box.
According to the PR, the lifting gas (not sure if it's helium) will be recovered:
"Following completion of a mission, the BIB system is designed to quickly and automatically be recovered while the lifting gas is retained in the BIB self-contained helium storage system. The envelope can then be re-packaged inside the weather sealed crate, the vehicle is able to move on to its next destination, and the BIB system may be re-deployed."
http://ir.stockpr.com/wsgi/company-news/detail/1093/world-surveillance-group-to-unveil-proprietary-blimp-in-a-boxtm-system-at-auvsis-unmanned-systems-north-america-2012
How small do you think the box is?
Don't subtract just the box, subtract the box and all contents that will not be lifted. So you probably need to add tanks, a motor, and maybe even a power supply. My guess is that your numbers are close to being reversed - 100 pounds lifted and 400 pounds in the box; but that's only a WAG.
Acumen, your relentless citing of management's lack of purchasing stock in the open market as some indication of their lack of belief in the company makes no sense to me. If their inside information tells them something good is on the horizon and they go to the open market and buy shares right before that happens, they will likely be questioned about insider trading. It's too dangerous for them to make open market buys if anything is even potentially imminent.
Jet, you only need to lift the blimp part of the BIB (along with the tether and attached equipment), not the whole BIB. We haven't been told what each component weighs as far as I know, so any calculations would have to incorporate a guess of what the blimp and attached equipment weigh - somewhere between 0 and 500 pounds for the standard version.
I agree. It's difficult to tell by Estrella's wording, but the tranche money should be considered a funding source and not a payment for goods/services rendered IMO.
Good increase in revenues; better than I expected. I wish they would have provided gross margin numbers. I understand at this stage a net profit isn't in the cards, but it would be good to see they're making a decent gross profit.
Good point sinful. Much of the southern border can be driven without obstruction as well. If obstructions exist, pull it back in, drive, and let it back out.
Good concept - hope it sells. In any event, I don't expect immediate sales. Dealing with government agencies usually takes a while.
Drones Set Sights on U.S. Skies http://www.nytimes.com/2012/02/18/technology/drones-with-an-eye-on-the-public-cleared-to-fly.html?_r=1
Sorry if someone already posted this. I found it interesting that under the new law, the FAA "must also allow for “the safe integration” of all kinds of drones into American airspace, including those for commercial uses, by Sept. 30, 2015."
Here's the new law (http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=112&session=2&vote=00015)
Measure Number: H.R. 658 (FAA Air Transportation Modernization and Safety Improvement Act )
Measure Title: A bill to amend title 49, United States Code, to authorize appropriations for the Federal Aviation Administration for fiscal years 2011 through 2014, to streamline programs, create efficiencies, reduce waste, and improve aviation safety and capacity, to provide stable funding for the national aviation system, and for other purposes.
OK, so we now know that WSGI has some cash flow to work with. Hopefully, this will be a precursor to obtaining contracts. One substantial contract and things should really start hopping. In any event, finding someone willing to put up $5.5M is a good thing. The extra $5M in stock warrants don't mean all that much to me right now - if the investors were really confident the stock will exceed that price, they could just buy it in the open market for much less. The warrants just give them the opportunity to share in the company's success if things really take off.
Based on my gut feel from the wording, I expect to hear something regarding GTC before Argus. It also looks like they're ready to roll at Oklahoma State once the testing is complete in Nevada. Maybe it's time to build another UAV. It would allow concurrent testing and serve as a backup in case the one in Nevada gets another hole in it. Just a thought.
I was a little disappointed with the volume today, but the price direction I won't argue with.
Initial Testing Confirmed
http://finance.yahoo.com/news/World-Surveillance-Group-iw-1473547712.html?x=0
World Surveillance Group Confirms Initial Yuma Flight Testing Schedule for Argus One UAV
Argus One Testing to Begin August 23, 2011
Press Release Source: World Surveillance Group Inc. On Wednesday August 17, 2011, 9:07 am
KENNEDY SPACE CENTER, FL--(Marketwire -08/17/11)- World Surveillance Group Inc. (OTC.BB: WSGI.OB - News), a developer of lighter-than-air unmanned aerial vehicles ("UAVs") and related technologies, announced today that the Company has confirmed the schedule for the first round of flight testing of its Argus One UAV at the U.S. Army's proving ground facilities in Yuma, Arizona. The flight exercises, which are focused on the aerodynamic and free flight maneuvering of the airship, will commence on August 23, 2011 and are expected to continue for several days.
In preparation for the Yuma tests, the Argus One UAV successfully completed "final flight check" tethered test flights on August 15, 2011 at the Easton, Maryland airport under tower control. Following these test flights, the Argus One has been prepared and packaged for its transportation out to the Yuma proving ground facilities. Once deflated, the Argus One UAV fits in a standard size shipping crate for easy storage and transportation even to remote locations.
Under a contract from Space Florida, an independent special district, body politic and corporate, and subdivision of the State of Florida, following the conclusion of the Yuma flight test exercises, the Company will present the results of the Yuma flight exercises to Space Florida in a performance data package.
The Company intends to provide additional updates following the Yuma flight exercises and plans on adding video and pictures of the airship flying at Yuma on our website www.wsgi.com.
Typo on 99.1 "Audited financial statements of Global Telesat Corp. as of and for the two years ended December 31, 2011"
Hard to audit a period that hasn't ended yet.
I like how the press releases now start with KENNEDY SPACE CENTER, FL. That, removing the IRS cloud, and management investment add a little credibility to this microcap. Will it result in good things to come? Who knows? But at least it is a step in the right direction.
This stock has done quite well since this update - hope you made a bundle on it.
or this with his research on Eastcor:
Principle Contractor: EastCor Engineering
Date of Issuance: 12/18/2008
Branch of Service: Air Force
Contract Details:
The Air Force is awarding a Broad Agency Announcement, cost plus fixed fee contract to EastCor Engineering, Easton, Md. for a maximum $5,703,024. This objective of this contract is to design, build, test and deliver state-of- the-art Unattended Ground Sensors. At this time, $160,000 has been obligated. AFRL/RIKF, Rome N.Y. is the contracting activity (FA8750-09-C-0021).
Total Contract Value: $5,703,024
http://www.militaryindustrialcomplex.com/contract_detail.asp?contract_id=6998