Tuesday, December 30, 2008 12:49:05 PM
oclv99, there’s a lot of detail below, probably more than you want. I was fooling around with this and since it addresses your question, I’ve posted it. It shows about $3.7 million net billings in Q4 and $5 million net billings in Q1 leading to cash on hand of approximately minus 400K by the end of Q1 (if no more PPs are done). I calculated this from the bottom up (i.e., I wasn’t trying to come to a particular result) and tried to be realistic on sales.
DELL, FDE, UPGRADES
I showed a decline in Dell computer sales due to the economy, and fairly small improvements in upgrade and FDE sales because so far there is no evidence of traction. The fact that Wave needed to sell stock at $.28 a share near the end of Q4 says to me that there is still no traction in upgrades or FDE sales. I used 6,000 upgrades in Q4 for sales of $360,000. If there had been, say, 20,000 upgrades (even one large customer) that would have equaled sales of $1.2 million – enough to have made the December PP unnecessary.
OPEX, SEVERANCE, A/P
I used Opex for Q4 of $5.725 million, $1.5 million less than Q3. I subtracted another $200K for Q1. I did not take into account any severance payments. I also did not show any paydown of the $ 3 million Accounts Payable build-up during Q2 and Q3.
DELL, FDE, UPGRADES
I showed a decline in Dell computer sales due to the economy, and fairly small improvements in upgrade and FDE sales because so far there is no evidence of traction. The fact that Wave needed to sell stock at $.28 a share near the end of Q4 says to me that there is still no traction in upgrades or FDE sales. I used 6,000 upgrades in Q4 for sales of $360,000. If there had been, say, 20,000 upgrades (even one large customer) that would have equaled sales of $1.2 million – enough to have made the December PP unnecessary.
OPEX, SEVERANCE, A/P
I used Opex for Q4 of $5.725 million, $1.5 million less than Q3. I subtracted another $200K for Q1. I did not take into account any severance payments. I also did not show any paydown of the $ 3 million Accounts Payable build-up during Q2 and Q3.
Q4 NET BILLINGS Q1 NET BILLINGS
Units Price Millions Units Price Millions
Oct D Series 1,500,000 .25 .375 Q1 D 1,500,000 .50 .750
Oct E Series 1,000,000 .45 .450 Q1 E 3,500,000 .90 3.150
Nov D Series 750,000 .50 .375
Nov E Series 750,000 .90 .675
Dec D Series 750,000 .50 .375
Dec E Series 750,000 .90 .675
- - - - - - - - - - - - - - - - - - - - - - - - - - - -
5,500,000 2.925 5,000,000 3.900
FDE 12,000 7.50 .090 16,000 .120
Upgrades 6,000 60.00 .360 9,000 .540
- - - - - - - - - - - - - - - - - - - - - - - - - - - -
.450 .660
Acer 400,000 .20 .080 500,000 .100
NEC 0 0
Bcom, STM, Intel .150 .180
eSign .050 .070
Services .040 .040
- - - - - - - - - - - - - - - - - - - - - - - - - - - -
.320 .390
- - - - - - - - - - - - - - - - - - - - - - - - - - - -
TOTAL NET BILLINGS 3.695 4.950
= = = = = = = = = = = = = = = = = = = = = = = = = = = =
Q4 CASH Q1 CASH
CASH AVAILABLE
CASH FROM Q4 SALES CASH FROM Q1 SALES
ETS (October + November sales) 1.875 (2/3 Q1 sales) 2.600
FDE (2/3 of Q4 sales) .060 ( “ ) .080
CASH FROM UPGRADES (total Q4) .360 (total Q1) .540
CASH FROM “OTHER” (total Q4) .320 ( “ ) .390
- - - - - - - - - - - - - - - - - - - - - - - -
2.615 3.610
CASH FROM Q3 SALES CASH FROM Q4 SALES
Receivables at 9/30 .933 Rec at 12/31 1.080
CASH NEEDED
COGS 3.695 x .11 ( .406 ) 4.950 x .11 ( .545 )
OPEX Q3 – 1.5 million ( 5.725 ) ( 5.525 )
D&A .100 .100
SBC .500 .500
CAPEX ( .100 ) ( .100 )
- - - - - - - - - - - - - - - - - - - - - - - - -
( 5.631 ) ( 5.570 )
BEGINNING OF QUARTER CASH ON HAND
COH End of Q3 .697 COH End of Q4 .492
PRIVATE PLACEMENTS
PP 10/30 .678
PP 12/26 1.200
- - - - - - - - - - - - - - - - - - - - - - - - -
1.878 0
END OF QUARTER CASH ON HAND
END OF Q4 .492 END OF Q1 ( .388 )
= = = = = = = = = = = = = = = = = = = = = = = = =
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