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Biotech / Medical : GUMM - Eliminate the Common Cold -- Ignore unavailable to you. Want to Upgrade?

To: pz who wrote (2007)	1/11/2000 7:05:00 PM
From: DanZ	Read Replies (1) \| Respond to of 5582

Revised Fourth Quarter Estimate. Q499 E Gum Zicam Total Revenue 800,000 8,200,000 9,000,000 Cost of sales 600,000 2,870,000 3,470,000 Operating expenses 550,000 1,200,000 1,750,000 R&D 120,000 100,000 220,000 Total expenses 1,270,000 4,170,000 5,440,000 EBIT (470,000) 4,030,000 3,560,000 Interest/Other income 31,000 0 31,000 Interest expense (450,000) 0 (450,000) Preferred stock dividends (100,000) 0 (100,000) Deduct for Minority Interest in Gel Tech (1,612,000) EBT 1,429,000 Income tax 0 Net Income 1,429,000 Weighted average shares outstanding 8,000,000 Earnings per share $0.18 Assumptions: 1. Revenue a. Expecting lower gum sales than the third quarter. b. Zicam sales based primarily on Nov 18 press release. Orders were 5 x Q3 at that point (about $6 mil). I believe that the company filled those orders and received and filled an additional $2.2 mil. 2. Cost of sales a. Gum 75% of sales b. Zicam 35% of sales 3. Operating expenses a. Gum based on historic avg. b. Zicam $1 mil advertising + historic avg for other. 4. R&D a. Gum increase due to nicotine gum R&D b. Zicam increase due to clinical studies 5. Interest Expense Notes outstanding at beg of quarter = $3.2 mil Interest at 8% = $64k Approx interest on loans other than Citadel = $225k Amortization of warrants to Citadel and Intercontinental Capital Corp = $75k Amortization of 10% premium to pay half the Citadel financing = $75k 6. Preferred dividends $1.6 mil outstanding at beg of quarter at 14% = $56k Amortization of warrants = ~40k 7. Minority interest is 40% to Biodelivery Technologies. 8. Income tax is 0 due to carryover loss from prior years. 9. Number of shares outstanding increased from 7.5 mil at end of 3rd quarter due to exercise of options.