Robert, that means that last quarter's AR of about 1.8 MM was all to be received from officer's loans? I thought a big chunk of that was Hamil. The increase in AR is 1.2 plus MM while increase in loans only $150,000. The balance sheet probably still suffers from "quirks" due to the movement from R&D to production.
As for the new $25 MM, if you are right, and it is not included in cash, how was the quarter's loss and increases in WC paid for? AR and inventories increased by about $3 MM, while payable decreased by about $4 MM, thus cash used in that for increasing working capital is $7 MM, add to that $9.3 MM in quarterly losses and you come up with roughly $16 MM cash used in the quarter, but their cash position has not changed substantially from last quarter (down about $3 MM), meaning that at least $13 MM of that injection is already in, that gives them another three quarters or so at current burn rate. You got to understand, however, that they cannot wait until cash is exhausted before they go the the well, they must have that cash at least a quarter (if not more) ahead of time or run the risk of being forced once more into "vulture financing".
Zeev |
