Replies to post #17705 on uWink Inc. (UWKI)

[Rawnoc]

When you do your analysis, keep in mind that they've carried $2.8 million more in accounts payable than they have in the current quarter. Property plant and equipment has tripled in the 1st 6 months of the year, I'd like to think that's a previous cash need to be repeated every quarter.

They used $2.2 mil in cash last Q. They should burn at least 0.5 mil less on property plant and equipment (I would think?). I'd like to think they'd have an extra 0.2 mil in higher gross profits. This brings the burn rate down to $1.5 mil (these are wild guesses to see if the 12 months thing is even possible using plausible potential assumptions).

$3.2 mil in cash + possible $2.8 mil in increased payables = $6 mil cash. Burn rate $1.5 mil. Cash needs okay for 12 months.

This is a hypothetical example of how it MIGHT be possible. This also ASSumes Mountain View is of no help, Hollywood & Woodland Hills don't improve during the Xmas period, and no material revenue is generated from licensing.

[Rawnoc]

Scenario 2...

Since the company is supposedly transforming/transformed into a technology/software company that has some restaurants, it's impossible for us to do any meaningful cashflow analysis by using the smaller focus of their business to project out 12 months. Their focus is on other revenue-generating activities which may or may not be successful. They are obviously in a far better position than we are to know what kind of cash they expect to generate or even have already generated from such. Therefore we can only guess IMO that a statement is B.S. but you really don't have a clue -- you cannot analyze the cashflow of hamburgers to try to figure if their software-selling business will generate enough cash.