How to finance-borrow the money
Put up WXP as collateral, whatever it takes to secure the money. In the big picture 14M isn't that great a sum. Seagate is in the pipeline. There are many successful and not so successful companies carrying debt. This is one area that is always looked upon as a positive- Wave has no long term debt. Fine, nice. What benefit has it given the company? We can speculate, but truth is there isn't any. They have not taken on any debt so we cannot say absolutely what adverse effect it had. None. Only that it sounds nice to say Wave is debt free. With Seagate in the pipeline and so many other things coming, allegedly,( only because there are still no concrete $$ generating deals on the table that guarentee) there should be no reason that debt should not be a consideration. One can make the arguement that it won't look good on the books for those on the Street. I can also make a case for the compensation given the companies performance looking just as bad. The only reason I can think of for this company not to take on debt versus a PP would be a continued lag in the revenue flow. 14M in debt isn't really that much when you look at what this company has lost over the years dosen't even amount to 5% of that total and if I read it right 800K is what they lose to process the PP and put it through. If they are that close to a steady revenue flow than maybe it's time to take on some debt.
Dave
