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Monday, 03/24/2014 8:52:24 AM

Monday, March 24, 2014 8:52:24 AM

Post# of 69
UPIP Short Company only gets 80 Million not the 100 Million Per CC Ok here is the deal they sold their patents for 100 Million BUT They have a revenue sharing agreement with Ericson so they have to pay off the top 20% of the 100 Million goes straight to Ericson or 20 Million Dollars leaving UPIP With only 80 Million add in the 80 Million Dollars lets do the math here

Eric Vetter - President and CAO
And you are right, this is our first year as a 100 million and Ericsson gets 20% of that, so we'll get, that will be the split of the top-line.

Mike Latimore - Northland Capital Markets
Got it. And then just to be clear, is all of the $100 million here, is that all going to be basically included in the revenue share deal with the Ericsson sort of count against that sort of first 100 million or is it a portion of 100 that goes against that revenue share deal?

Phil Vachon - Chairman
No Mike it’s all 100, Ericsson -- our deal with them as we share, have the share in all revenue generated.

Mike Latimore - Northland Capital Markets
So even though you bought some extra pounds from Ericsson, there is a whole 100 that still grows against that agreement, right?

Phil Vachon - Chairman
Yes, basically they share on the topline, we purchase some -- acquired some shares or some patents from them which will be outside of this deal. So they’ll take their percentage of the topline plus that.

its on the page they disclose its 20% or 20 Million Dollars that they have to pay to Ericson

And let's say they grow at a moderate pace, would we expect but not -- best case scenario or worst case scenario, would we expect future royalty at some point?

Phil Vachon - Chairman
Not for a few years

So one time deal for 80 Million with no other revenues company is losing money cash flow negative as I will show below Strong Sell Short Sell on the news

Company has 110 Million Shares outstanding Stock price 2$ a share 220 Million Dollar market cap

Income Statement
Revenue (ttm): 115.00K Hardly NO Revenues in fact the deal does not even create any revenues at all
Revenue Per Share (ttm): 0.00
Qtrly Revenue Growth (yoy): N/A
Gross Profit (ttm): 121.00K
EBITDA (ttm)6: -32.10M Huge Losses from opperations
Net Income Avl to Common (ttm): -35.63M Even worse with all their high intrest bearing debt they pay over 12% intrest on their debt closer to 13%
Diluted EPS (ttm): -0.36
Qtrly Earnings Growth (yoy): N/A
Balance Sheet
Total Cash (mrq): 51.10M Ok Add in the 80 Million Dollars (100-20)=80 Million 131 Million Dollars VS market cap of 220 Million Dollars Hmm think that the market had it this news done priced in as the market cap before was 143 Million Dollars Also doubt that this will be the entire cash balance company does have no NOL but its not enough to cover the entire 80 MIllion for tax purposes PLUS you have to discount this for cash burn and losses since the company is losing money from opperations and is cash flow negative as we will see below
Total Cash Per Share (mrq): 0.47 add in the 80 Million 1.19$ per share now once this deal is done hasnt even been made final yet another risk
Total Debt (mrq): 23.83M Nearly 24 Million in Debt so 131 Million Subtract out 24 Million this is very high intrest bearing debt close to 13% 107 Million leaving a book value closer to a 1$ a share or 50% below where the stock is trading at Today
Total Debt/Equity (mrq): 54.46
Current Ratio (mrq): 7.29
Book Value Per Share (mrq): 0.40
Cash Flow Statement
Operating Cash Flow (ttm): -37.50M Cash Flow Negative BIG Time this company is burning cash like crazy -37.5 Million so that 80 Million want last very long at this rate
Levered Free Cash Flow (ttm): -24.49M

Total Cash Flow From Operating Activities (69,944) (43,628) (21,485) This company is burning cash faster then a oven -70 Million -44 Million -21 Million dollars over the past 3 years want take them long to burn that 80 Million Dollars negative cash flows is never a good thing for any business another reason Strong Sell Short

Net Income From Continuing Ops (39,679) (8,150) (8,105) Past 3 Years Company HAS Never turned a profit Losing MIllions of dollars instead and will continue to do so going forward

Unwired Planet (UPIP) Enters Overbought Territory ya I would say stock is off the charts! Strong Sell Short Sell DD Given Above

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