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Re: the big guy post# 17705

Tuesday, 08/26/2008 8:19:08 PM

Tuesday, August 26, 2008 8:19:08 PM

Post# of 19383
When you do your analysis, keep in mind that they've carried $2.8 million more in accounts payable than they have in the current quarter. Property plant and equipment has tripled in the 1st 6 months of the year, I'd like to think that's a previous cash need to be repeated every quarter.

They used $2.2 mil in cash last Q. They should burn at least 0.5 mil less on property plant and equipment (I would think?). I'd like to think they'd have an extra 0.2 mil in higher gross profits. This brings the burn rate down to $1.5 mil (these are wild guesses to see if the 12 months thing is even possible using plausible potential assumptions).

$3.2 mil in cash + possible $2.8 mil in increased payables = $6 mil cash. Burn rate $1.5 mil. Cash needs okay for 12 months.

This is a hypothetical example of how it MIGHT be possible. This also ASSumes Mountain View is of no help, Hollywood & Woodland Hills don't improve during the Xmas period, and no material revenue is generated from licensing.

Raw