Suzanne, I do not know why I am doing this, I must like you, here is the citation:
"...the Company issued an aggregate of
4,402,923 shares of its common stock to Felcrest and the former officers and directors who had indemnification claims..."
As for the calculations, I have not gone over it with a fine comb. I do not own the shares. The intent was to try and show where to find the "skeletons" in the closet. I believe I was even conservative since I am taking a burn rate of the last and current q at $1.5, but we already know that $700 K were a special expenditure to launch LL, thus at least last Q burn rate should have been $2.2 MM not $1.5. Similarly, since we have a major "outbound" project with the school beyond normal burn rate, the $1.5 should be larger.
All that money must be coming from somewhere, the old PP, if memory serves (and this time, please, you check this out) still had $2.8 drawable) since you do not run a company without having cash on hand for at least six weeks ahead, one should assume that the current quarter cash requirement are taken from somewhere as well (maybe that additional million you mentioned).
Good luck to you too.
Zeev |
