NeoMedia Technologies, Inc (NEOM)

[brewskih]

How do you like that non answer you got? You might want to ask her why she has never posted a monthly burn rate in this forum. Oh yeah, if I recall she already answered that question several months ago, when she said something like she would have to go sit at the company about a week, to go over the records to see where certain numbers come from.

However, I never mentioned burn rates. That came from Success, when I responded to Yellowjackets post asking for my source of information. I clearly copied and pasted OPERATIONAL LOSSES so it should of been clear to anyone I was talking about operational losses and not burn rates. But when she hastily made her 7 month outdated remarks, and I responded, that it was only 4 months, then she threw in the part about what the CEO said 7 months ago about burn rate.

But as for your question that Beam didn't want to answer, on what the burn rate is and where you get that info other then the 10Q, I too wont try to give an actual burn rate.

I will say however, unlike her claims, I do have an idea what burn rate is. Generally speaking its the amount of cash going out the door monthly to sustain your operations. The best place to go to get a general idea is yahoo finance, so you don't have to go pulling up multiple 10Qs to compare, since Yahoo puts the last 4 quarters numbers side by side. Yes I know thats not perfect because Yahoo doesn't list every detail but it gives you a general idea of the cash flow, and thus the burn rate.

For instance NEOM ended the 2nd quarter 2006 with 2,550,000.00 in cash on the books. In the 3rd quarter they received an additional almost 5 million in new financing, for a total cash of 7,550,000.00 approximately. By the end of the 3rd quarter according to their balance sheet they had 3,133,000.00 of that cash left. That means they spent 4.4 million in cash on something, or means they had a negative cash flow.

Now if you look at their cash flow statement, you will see they had a negative nearly 2 million dollars from operating, or about 700,000.00 a month. They also had a negative 1.7 million cash flow from investment activities. So between those 2 areas they had a negative cash flow of 3.7 million dollars or over 1 million a month. That negative cash flow was offset by the 5 million in new funding and sale of some stock, leaving them cash flow positive by about a little over 1 million.

But you don't count the new financing to determine the burn rate. You use the existing cash on hand minus the expenses, and from that you can determine the approximate burn rate, thus determine when the company will run out of cash and need new funding.

I know its not that simple and there are many line items to consider, but this gives you a pretty good idea. All you need to look at is the Balance Sheet, Cash Flow Statement. and the Income Statement to make an estimate. All 3 are available on Yahoo all the way down at the bottom left side of the link below. When you change from 1 to the other at first it will give you annual data. Click the link at the top of the statement next to VIEW and it will switch to Quarterly DATA. The side by side columns make it easy to compare quarterly data quarter over quarter. Below that link is the link to a simple definition of burn rate as well, something I supposedly know nothing about.LOL As I stated there are a number of things to consider, but the average investor only needs an approximate burn rate, to determine whether a company has enough cash to go forward, without needing additional funding. And NEOM does not as best we know based on the MOST CURRENT NUMBERS we have. And I am still looking for that vast improvement in the 3rd Quarter someone here mentioned occurred in the cash flow. If I find it I will let you know. As to what the numbers will be based on the activities of the 4th quarter, I am not even going to attempt to address that issue until I see the numbers. Because those numbers are going to be a mess, including settlement costs, assets, etc. So for anyone to bring up the 4th quarter activity at this time is a little premature, and would only be speculation on their part. We don't know how many employees were let go, and how many new hires there were for example, we don't know how active the paint business has been. For there to be no waiting time to bring in a vehicle they must not be too busy. But there again we also don't know whether the expenses were cut drastically either. We just have to wait and see.

http://finance.yahoo.com/q/cf?s=NEOM.OB

http://www.specialinvestor.com/terms/2167.html