Replies to post #14441 on Capstone Energy Inc (CGEH)

[CaptWhizbang]

I copied the numbers from the 2Q, Gene. You will have to quiz Jamison as to how he came up with it. I am just carrying the message. ;)

[gene_genome]

"Cash burn of $2.6 million, compared to $7.4 million a year ago"...??

I understand now..sometimes I'm not the sharpest pencil in the drawer..but it seems it all comes down to a bit of accounting terminology..

Net cash used in operating activities is shown under..
"CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands, unless otherwise specified"..

Proceeds from exercise of common stock warrants..Plus net cash from financing activities..Plus net proceeds from revolving facility..are all subtracted from net cash flow loss..

So now..a 6 month cash flow loss of 13 Million..now turns into 4.7 Million..It's a miracle..It's a miracle!!

So..when DJ says cash burn was only $2.6 Million for the quarter..it's very true..but very misleading..it is cash used after financing (borrowing) activities are included in cash and cash equivalents..Nice pump DJ..


http://www.sec.gov/cgi-bin/viewer?action=view&cik=1009759&accession_number=0001104659-12-076008&xbrl_type=v#