NanoTech Gaming Inc (NTGL)

[skitahoe]

Penny, perhaps there's a way to roughly estimate their costs. I doubt if the material used in a product exceeds 10% of what they sell it for. If we figure the average employee costs them $100K a year, that's $2.5 million if they have 25 employees, a number I've heard in the past. That would leave what they pay for the facility, which I understand Fayiz, not the company, owns, as well as utilities, taxes, etc. which might equate to another 10%. This is very rough, but if it holds out, I believe it's saying that something over 50% of the selling price is profit if they're selling somewhere around $10 million a year. The more they sell, the higher the profit, and they're probably break even if they sell $4 million or less.

This is certainly not an accurate estimate, but it seems like a reasonable place to start. It certainly doesn't take in substantial executive salaries, but at this point in the company's development, I would think they're getting some major stock options, not major pay. I would hope that most employees are seeing substantial stock, it gives them a big incentive to see that the company succeeds.

Gary