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To: Suzanne Newsome who wrote (32002)	6/30/1999 2:08:00 PM
From: Sam LBI nj	Read Replies (1) \| Respond to of 44908

Suzanne, Is the learning center deal based on $10.00 cards?.or will they sell cheaper ones? Sam

To: Suzanne Newsome who wrote (32002)	6/30/1999 2:52:00 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 44908

Suzanne, sure, an internet base business requires less working capital than brick and mortar businesses, but they still require working capital. Take the Learning business, there are thousands of schools that hopefully might participate, each one will need something (cards, brochures selling aids etc,) custom designed for these schools (I presume for each school since each school has its own charitable activity). That requires some inventory of these. The idea that the $700,000 spent so far on this project is all that is required for 30,000 school IMHO, is not rational, it would assume that on the average the customization cost is less than $25 per school. Thus these costs, while reimbursed later by the schools when they deliver some of the funds collected by the kids, is going to be booked as inventory. Since the schools will take their time (typically for schools' payable are in the 60 to 90 days range) to pay, it create accounts receivable, a company can be "profitable" and still be cash starved. Of course, I am assuming no inventory of the CD, which if someone else inventories, they will have to ask for a "fair return" for capital and risks tied up in the operation. One of the best models can be found at BYND or AMZN, and indeed their receivable are much smaller than normal business, but even there you have between 15 to 45 DOS in receivable. Zeev