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Microcap & Penny Stocks : TSIG.com TIGI (formerly TSIG) -- Ignore unavailable to you. Want to Upgrade?

To: ztect who wrote (44137)	12/25/2000 4:17:04 PM
From: Zeev Hed	Read Replies (3) \| Respond to of 44908

Z, I was under the impression that the new forecast for Affinity's sales is only $25 MM (rather than the prior expected $30 MM when the $4 MM pretax profits were forecasted), in any event, you are right in taking only $4.8 MM in burn rate as a "first cut", if you assume no more financing (and associated costs). However, on a "second look at these numbers, you find that TSIG's operating expenses for the month of September 2000 only, is cited by this document, at $464,000, which by itself comes to $5.570 on an anualized basis. If you subtract these $464,000 from th last quarter's expenses and multiply by four the resulting $900,000 or so, you end up with an additional $3.6 MM on an annualized basis for GSCI (could be $500,000 less if no "consulting fees are paid to outsiders), or a total yearly burn rate of $9.174 MM, which is even worse than my own conservative assumption. Even if Affinity does bring down to the bottom line $4 MM (and it should be doubtfull the number will be that large in iew of the recent downsizing of sales expectations to only $25 MM), you still have close to $5 MM in cash drain that will have to be financed. Have a happy holidays season. Zeev