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Gold/Mining/Energy : Nuvo Research Inc -- Ignore unavailable to you. Want to Upgrade?

To: E. T. who wrote (7909)	10/30/2001 10:57:34 AM
From: Cal Gary	Respond to of 14101

Hi Erik, "Sales of PENNSAID(R) in the United Kingdom could not be recognized in this fiscal quarter as the agreement with Provalis Healthcare Ltd. provides for invoicing after the product has been received and cleared for release following laboratory testing in the UK, a process which can take up to six weeks. Consequently, shipments made during this quarter can only be billed and therefore recognized in the next quarter. Other income, which includes interest income, was $75 thousand for the three months ended August 31, 2001," I get this picture where all the nice little thousands of bottles filled with Pennsaid attached with their spanking new Labels, are openned, tested, refilled, maybe relabeled and repackaged. What are they testing / inspecting for? 1. Q.A. got what they paid for 2. Medicinal grade DMSO 3. Anthrax 4. Reverse engineering Why six weeks? 1. Quarentine (from what?) 2. Government laboratory, government workers doing the inspection On another note: In order to earn $75,000 interest revenue in 1Q, there gotta be principle in the bank. If Annual interest rate was x then y balance is needed to generate $75K x y 10% $750k 5% $1.5mm 3% $2.5mm 1% $7.5m Therefore, an illusion. Any short term cash balance cannot generate nearly this amount in interest revenue in 1 quarter. Notes Receivables must make up a large chunk of this figure. It is now $2.9mm up almost .5mm. I wonder if this .5mm is capitalization of interest owing from last year. I doubt OXO can pay interest only. Therefore, an illusion.