Replies to post #16558 on uWink Inc. (UWKI)

[the big guy]

They could easily cut this down if they had to. Restaurants are very profitable. I would suggest maybe some of that "salaries" are R&D expenses, which is usually a separate line item for a high tech company. This may be a nice way of hiding it and part of posturing themselves as a restaurant business when actually they are a software company. This is the major reason why they are not currently profitable.

NOTE 7 - COMPONENTS OF SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

The major components of selling, general and administrative expenses for the
three months ended April 1, 2008 consisted of the following:

Professional fees $ 125,562
Rent 79,676
Restaurant operating expenses 135,490
Product development 110,478
Salary expense 668,384
Employee stock option expense 322,536
Depreciation and amortization 86,622
Other 171,624
----------
$1,700,372
==========

[P K G]

My only point was cash burn rate. 1/1/08 they had $7,294,019 cash and 4/1/08 there was $5,330,037. That will last less than three Q at that burn rate. More cash has to start coming in than did in that Q from somewhere or they are out of cash again.