Take a little closer look at the numbers instead of your standard inflations.
The loss from continuing operations the 2Q was $1.6 which is getting smaller this quarter due to lowered expenses and increasing revenues. Past due bills were $600,000. IRS $433,000 and reducing according to an agreed upon schedule with the IRS which would have it down to or under $400,000 now. Yes, there is communication and dealing with the IRS and the IRS is working with TSIG. This totals $2.6m.
If the paydown on the IRS is less than $100,000 last quarter then we can assume the same for this. I'd allow about $1.2 (the current burn rate is under $350,000/mo), $600,000, $100,000 needed to run the company this quarter. $2m ought to do it not $4-5.
If the funding brings $3m, the quarter is covered with with $1m to execute with. Remember the quarter is now half over so the company has been keeping up with things until now though maybe not adequately. This may leave more to execute with, possibly another half million to million. They may likely use some of that to pay down the prior obligations so the execution cash may be approx $1.5m.
Oh, add in revenues which should jump this quarter. Also there are distributors coming on board. There should be over $500.000. More operational money. If anything comes from the executing contracts before Oct, the revenues will be much higher but that impact will probably be posted the end of Sept.
The outstanding 8-12 at 4:55 was 132,769,394. The time I checked before there was 9m of that in escrow.
One week ago there was approx $650,000 left to convert. $180,000 had been filed for.
Your forcast of the future operations still leaves your credibility faltering. It is easy to project disaster per your stated opinion when there is no future exposed today. All we have to go on right now is the contact proceedures and the reply approximations. I'd like to also project that you will not be present here to accept the actual figures that will come from the contracts to be executed upon in the 4Q. Guys like you seem to fade away when the negativity doesn't carry weight anymore.
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