Seconds and EA,
Per today's 10Q:
1. GMGC's cash is $16 mil as of Apr 30. Down $1.3 mil for the month (or equivalent to $4.2 mil burn rate for Q2 excluding revenue).
2. Series D reset at $1.084 (110% of ave trading price for 10 days following Mar 31). They can reset again the following 10 days after Sep 2001 and Mar 2002.
3. Series F reset at, I believe, $.887 (90% of ave trading price for 10 days following Mar 31). They can reset again at the end of June 2001, Sep 2001, Dec 2001, and Mar 2002.
4. Reset periods for both end after the Mar 2002 reset period.
5. GMGC only owes Qwest $100,000 more which ended Apr 30 (ie no more Qwest).
6. Markman receives $350K over two equal pay periods on May 18 and July 13 (plus option to purchase 685K shares, don't know at what price).
7. Number one market is use of automated voice access to info and services over the phone, then speech and languages services (which focuses on the software tools and techniques for developing socially engineering VUI), and then I think hosting (but not sure).
8. Ninety-four percent of the $1.2 mil in revenue was from OnStar. The other $70K or so from Portico (see 10Q for breakdown in expenses).
9. R&D to increase slightly this year.
10. They expect the ELOC and LT agreement with cash on hand to fund through 2001. Me - Well, expect some more registration of shares very shortly. Plus, I didn't realize that the LT agreement extend past March, 2001.
11. Expect further financing this year. Me-I would expect by mid-summer at the latest. They will be down to around $10 million and they urgently need the cash now. So, because of the reset period of the Series F, need for financing, and no revenue this quarter expect nothing in the way of price appreciation (barring an announcement with IBM or other entity).
12. As of April 26, 6.6 mil shares sold through LT agreement for $13.64 mil. Me - With the Revere deal they effectively have no shares left from the ELOC registration. Therefore, they will need another registration very soon. They had better be up front this time about why they need the registration. By the way, they can't even tap into the ELOC without a future registration of shares. I believe the stock price must be $2 per share or higher if I understand the agreement right.
13. Expect future losses and negative cash flow for the next 15 months.
14. There are so many warrants out there with the preferreds, TL, GM, etc that it is impossible to figure out what in the hell is going on with the number of shares actually spoken for and also due to the reset periods.
15. Intend to hire additional personnel including sales and business development personnel. Me - They had better hurry.
16. ELOC is up to $27.75 mil if GMGC needs it but I doubt if they will use this form of financing.
17. Sixteen patents and 10 pending.
This is by no means all inclusive. Just some of the things that I noticed when I read the 10Q. There are the usual buyer beware notifications in the 10Q:)
I wish I had something really positive to hang my hat on with regards to the 10Q but I just couldn't find anything in particular. I don't expect the price to do anything for awhile unless some big equity partner comes into play. At the risk of sounding very repetitive they need financing and revenue now and they also have the reset periods to contend with (Series D and F) due to no revenue so to speak.
Anyway, take care and let me know if you all read anything of any importance that I may have missed.
Kurt
PS I didn't proofread my post for errors:)
PS Almost forgot the source:
nasdaq.com |
