SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : VALENCE TECHNOLOGY (VLNC)
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: LiPolymer who wrote (19392)4/28/2000 11:04:00 AM
From: Larry Brubaker  Read Replies (2) of 27311
 
<<A quick review of Current Liabilities from past SEC filings: 03/99-$11.5M, 06/99-$10.8, 09/99-$10.4M, 12/99-$13.4M (Note the consistent trend, with slight uptick due to the production ramp.)>>

Lipo, what your post fails to mention is that VLNC had little cash in the bank during the entire year of 1999, until the $30 million financing right at the end of the year. Remember the current liabilities during 1999 consistently far exceeded the available cash. And remember the string of $3 million financings they got just as they kept running out of cash.

Current liabilities are those that must be paid within 1 year. Given VLNC's lack of cash last year, it is reasonable to suggest that they delayed paying current liabilities as long as they could, and that much of the $13.4 million of current liabilities that were reflected in the December balance sheet were payable long before December of 2000.

Which is why I suggested to Zeev that his assumption that VLNC still has $20 million in the bank might be optimistic. To obligation to pay off current liabilities will drain cash as well as the increasing operating expenditures. And since no material revenue is expected until at least the latter half of 2000, it does not seem likely that revenue from product sales will materially impact cash burn for some time.

Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News