oclv99, there’s a lot of detail below, probably more than you want. I was fooling around with this and since it addresses your question, I’ve posted it. It shows about $3.7 million net billings in Q4 and $5 million net billings in Q1 leading to cash on hand of approximately minus 400K by the end of Q1 (if no more PPs are done). I calculated this from the bottom up (i.e., I wasn’t trying to come to a particular result) and tried to be realistic on sales.
DELL, FDE, UPGRADES I showed a decline in Dell computer sales due to the economy, and fairly small improvements in upgrade and FDE sales because so far there is no evidence of traction. The fact that Wave needed to sell stock at $.28 a share near the end of Q4 says to me that there is still no traction in upgrades or FDE sales. I used 6,000 upgrades in Q4 for sales of $360,000. If there had been, say, 20,000 upgrades (even one large customer) that would have equaled sales of $1.2 million – enough to have made the December PP unnecessary.
OPEX, SEVERANCE, A/P I used Opex for Q4 of $5.725 million, $1.5 million less than Q3. I subtracted another $200K for Q1. I did not take into account any severance payments. I also did not show any paydown of the $ 3 million Accounts Payable build-up during Q2 and Q3.
Q4 NET BILLINGSQ1 NET BILLINGS
Units Price Millions Units Price Millions
Oct D Series 1,500,000 .25 .375 Q1 D 1,500,000 .50 .750 Oct E Series 1,000,000 .45 .450 Q1 E 3,500,000 .90 3.150 Nov D Series 750,000 .50 .375 Nov E Series 750,000 .90 .675 Dec D Series 750,000 .50 .375 Dec E Series 750,000 .90 .675 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 5,500,000 2.925 5,000,000 3.900