Replies to post #72794 on Quantum Materials Corp. (fka QTMM)

[puravida19]

Delay is just money delay. Doesn't change anything material. Construction ongoing.

[TedJ]

Forecast gross revenues in 2019 were originally $7-10 million in the Jan Shareholder update.

Subtracting the $1 million licensing fee leaves $6-9 million.

Subtracting the $3.25 million for equipment (deposit plus payment on delivery in 2019) leaves $2.75-5.75 million for the consulting fees and training fees previously forecast to be paid in 2019.

MILESTONES - Licensee

c) Within no later than 120 days of execution of this agreement licensee will place purchase orders and pay deposits on the purchase of the initial lab equipment to include but not be limited to the Schlenk lines, Micro reactors and support equipment.
d) Within 210 days of execution of this agreement licensee will provide proof that construction on the facility has been completed.
e) Within 300 days of execution of this agreement licensee will provide proof that quantum dot production has commenced at the Assam facility.

210 days (7 months) would have put the original construction completion date at June 19, 2019 and start of production at September 19, 2019 (300 days).

With production starting in September 2019, that left enough time for QMC to complete the equipment setup and training, invoice Amtronics for the $2.8-5.8 million, and the 30 days for Amtronics to pay the invoices in 2019.

Per the 3/19/19 PR,

The initially proposed 12,000 square foot facility has been expanded to cover 120,000 square feet and is anticipated to be completed in the fourth calendar quarter of 2019

If you assume the middle of the fourth quarter (11/19/19) as the delayed construction completion date (5 month delay), then this will probably delay start of production until 2/19/20.

Assuming reactor setup and training will not begin until 11/19/19 and probably will not be completed until production starts in February 2020, then a good chunk of the payment of the forecast $2.8-5.8 million could get delayed into 2020.

So I think the $7-10 million gross revenue forecast for 2019 would more likely drop into maybe the $5-8 million range for 2019 due to the 5 month construction delay based on expanding the size of the project from 12,000 sq ft to 120,000 sq ft.