Tuesday, March 23, 2004 9:10:33 AM
CMF/Paul...re SFLK...I saw the merger announcement at roughly 14:30 PST...and manage to get on the CC (last question). I had about 5 minutes of DD under my belt...hey what can I say...I believe in doing my DD before getting on a CC 
Anyhow...I asked about their cash on hand....the CEO responded that at the end of the Last year...they had between 7-8 million in cash and have subsequently raised another 9 million. Combined this with SSPXs cash of between 8-10 million...it provides the new company with ~20 million in cash. SFLK is burning through ~2-2.5 million/quarter and producing 1.5 million over the past 9 months or so. SSPX on the other hand is burining ~ 1 million/month but generating little over 1 million/month. Besides having access to each others client base and potentially being a one place shop regarding some of the large govt. contractors....I'm not sure I follow the logic of merging at this time. I think it will benefit Wave...but I'm not sure about the individual SSPX shareholder.....FWIW
Sincerely,
Jas
Anyhow...I asked about their cash on hand....the CEO responded that at the end of the Last year...they had between 7-8 million in cash and have subsequently raised another 9 million. Combined this with SSPXs cash of between 8-10 million...it provides the new company with ~20 million in cash. SFLK is burning through ~2-2.5 million/quarter and producing 1.5 million over the past 9 months or so. SSPX on the other hand is burining ~ 1 million/month but generating little over 1 million/month. Besides having access to each others client base and potentially being a one place shop regarding some of the large govt. contractors....I'm not sure I follow the logic of merging at this time. I think it will benefit Wave...but I'm not sure about the individual SSPX shareholder.....FWIW Sincerely,
Jas
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