"All this takes time and money. Time estimate? Based on past history and current collaborations - couple of years. Money estimate? Conservation of cash has begun, Avid growth to outpace current needs and help offset future needs. "
So anyone's thoughts on this:
Contract Revenue was 6,672,000 ( license revenue 37,000?)
Cost of contract Manufacturing 3,896,000.00. SO a 40% Profit Margin
Selling general and administrative costs were roughly 4.5 million
Research and development costs were 15 million
Lets assume Contract Revenue increases to 12,000,000 ( I thought I heard most of it was in the 4th quarter of 16 and 1st quarter of 17. Maybe we net a profit of around 5 million( this could be larger as well, since the new facility will be more profitable). This could potentially cover the Selling general and administrative, since according to the conference call, they will not be restructuring the business, but continuing to grow it.
The real question is how much money will be spent on research and development. I guess we can look back over time, but even with plenty of Bavi on the shelf to supply any upcoming trials and collaborations, there would still be additional costs. Will it be closer to the 5 million dollar range or closer to the 10 to 15 million dollar range, and if so obviously the money has to come from somewhere to cover that. SO over the next 3-6 months we will most likely have a pretty significant negative cash flow.
Collaboration payments or ATM?
Just a quick take, but thank God for AVID or we would be done. Any thoughts appreciated.
Oops one last piece, lets not forget the 1.4 million per quarter payment for the series E preferred. That hurts a little as well.
