There are many things that are suspicious about that Summary. First of all, it is only the most basic estimate (Level 1 or "Order of Magnitude"). That means it is accurate to something like +50/ -40%. That means the true cost could be anywhere from $10M to $4M. It does not make sense that they would be so vague now. It means that they have not been doing these kind of estimates, which implies that the system is undocumented, and hence not able to be easily commercialized. I am jumping a bit, but in order to build the processor you have to be able to have a document package (set of drawings) to deliver to a contractor. I get the impression that is is something that John and his crew have been toying with for years now. With no documentation, that is useless.
FUrthermore, as the estimate is more refined, it tends to increase in magnitude. It should not... but it does. The Level 5 or "definitive estimate" is always higher. At that point you have a fully documented system with a full drawign set.
Most importantly, you can't just jump from a few production figures to EBITDA. There was nothing mentioned about the assumptions for SG&A, which are included in the calculation of EBITDA, and other costs.
There should have been statements about the Basis used, such as at the very least the pricing assumed for the product. They should have said something.
All that results is that the reader has to make their own assumptions and put it together, which is why we are still talking about it.
It is very suspicious, and for the company to come out with the statement they did, that it was a real document, only makes it more incredible.
One last thing... when was the last time the term EBITDA was used on this board? I used it a coupel of weeks ago. You will find it does not apply to JBII. They do not pay interest, and have no AMortization. You will see it does not appear on their I/S. WTF?
Someone do a Board Search on the term "EBITDA". I am curious how often it has been used up until now. I would not be surprised if I was the first person to use the term a couple of weeks ago. I am a Free member, so I cannot do a search.
