AI
Tuesday, September 16, 2008 4:33:49 PM
trustcousa, I’ve re-read your post #170954 and now I see why you asked about a doubling of revenues.
I see what you are getting at: if they’ve been able to get by on raising about $800K per month, and their expenses average $2.3 million per month, that would seem to indicate that they have brought in $1.5 million per month from other sources. If it’s revenue, then billings should be about $4.5 million for Q3. I don't think this is quite a correct approach, but it's probably close enough.
Also supporting your idea is the continued reference by SKS to large orders in the pipeline that could come through.
But there is also conflicting evidence.
-- They didn’t revise the cash shortfall estimate downward in the September 15 Prospectus to reflect a revenue increase. $7.2 million makes no sense if they don’t need to raise any more money in Q3 and will be close to break-even in Q4. There is, of course, the possibility that this was an oversight.
-- Steven’s statements (mentioned in my last post) in the Q2 CC about upgrades through early August: (“So we already have a good strong showing in Q3. So revenues are up in Q3 versus a similar time frame in Q2.”) vs. what he said in the Q1 CC (“ We have seen now, since the first of April, more sales to date than we did in the entire Q1”). This tells us that there was no spike in upgrades through early August and that the RATE of increase had actually fallen.
But the money has to be coming from somewhere. The truth is that I don’t know what to make of it. It must be either
-- increased upgrade revenue as you suggest
-- a cash infusion expected shortly (WXP) so they’re pushing out expenses
-- the company just can’t get the money it needs and we will see some kind of retrenching
I see what you are getting at: if they’ve been able to get by on raising about $800K per month, and their expenses average $2.3 million per month, that would seem to indicate that they have brought in $1.5 million per month from other sources. If it’s revenue, then billings should be about $4.5 million for Q3. I don't think this is quite a correct approach, but it's probably close enough.
Also supporting your idea is the continued reference by SKS to large orders in the pipeline that could come through.
But there is also conflicting evidence.
-- They didn’t revise the cash shortfall estimate downward in the September 15 Prospectus to reflect a revenue increase. $7.2 million makes no sense if they don’t need to raise any more money in Q3 and will be close to break-even in Q4. There is, of course, the possibility that this was an oversight.
-- Steven’s statements (mentioned in my last post) in the Q2 CC about upgrades through early August: (“So we already have a good strong showing in Q3. So revenues are up in Q3 versus a similar time frame in Q2.”) vs. what he said in the Q1 CC (“ We have seen now, since the first of April, more sales to date than we did in the entire Q1”). This tells us that there was no spike in upgrades through early August and that the RATE of increase had actually fallen.
But the money has to be coming from somewhere. The truth is that I don’t know what to make of it. It must be either
-- increased upgrade revenue as you suggest
-- a cash infusion expected shortly (WXP) so they’re pushing out expenses
-- the company just can’t get the money it needs and we will see some kind of retrenching
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