Coates International Ltd. (fka COTE)

[Garyedward71]

What about the possibility, that it is an 8yr contract, that is based on a 50% per yr incremental increase in production over the 8yr term. As you have stated, the typical corporate agreements generally require a 30% letter of credit to initiate production. The COATES company will only be making the heads for the 150 watt GEN SETS, and just to simplify the projections lets assume that COATES will be charging $18,000 per CSRV head. So lets make some projections based on a 50% incremental increase per year over a 8 yr period:


(1) CSRV HEAD = $18,000

1st yr.

(100) CSRV HEADS = $1.8Mil.

$1,800,000 / $576,000 = 31.25% LETTER OF CREDIT


2nd year

(150) CSRV HEADS = $18,000 x 150 = $2.7Mil


3rd yr.

(240) CSRV HEADS = $18,000 x 240 = 4.32Mil


4th yr.

(360) CSRV HEADS = $18,000 x 360 = $6,48Mil.


5th yr.

(540) CSRV HEADS = $18,000 X 540 = $9.72Mil.


6th yr.

(800) CSRV HEADS = $18,000 X 800 = $14.58Mil.


7th yr.

(1200) CSRV HEADS= $18,000 X 1200 = $21.86Mil.


8th yr

(1800)CSRV HEADS = $18,000 X 1800 = $32.8Mil.



TOTAL CSRV HEADS = 5190 UNITS

TOTAL REVENUE TO COATES LTD. = $95,000,000