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

To: Montana Wildhack who wrote (8197)	12/10/2001 12:57:09 AM
From: Cal Gary	Read Replies (1) \| Respond to of 14101

Thanks for the feedback Wolf. I'll put in some effort to update my spreadsheet in the coming days using the latest f/s data. I recall in the YE f/s there was a note regarding a $1.4m committment to buy production equipment as of May 31, 2001. I guess this amount did not make it into the f/s (why? perhaps Play the King can answer this) but has made it to the Q1 numbers. I notice the current liabilities jumped by 1446 last quarter Without checking the Annual Report, I guess that most/average option strike price is at $3.50. In Nov we traded down to that figure. With that in mind, I guess if anyone exercised their options and did not hold, was doing so for the good of the company and not for their own benefit. I also suspect some options were exercised in this current quarter (Nov) and predict it was a sizable number. Any reason why you would spec on this? DMX did draw $4mm in the last 2 draws. FDA: With great comfort and great confidence...

To: Montana Wildhack who wrote (8197)	12/10/2001 6:10:34 PM
From: PlayTheKing	Respond to of 14101

So I'm short 869,000 and I think the Sales&Marketing expenses rose in the November quarter. From that I get: The statement of cash flows is derived from the Balance sheet and is one of the trickiest statements to prepare. Essentially, the change in non-cash working capital is calculated as follows: Assets: If it increases quarter over quarter it means you have a "negative cash flow." The idea is that you should have received cash but did not. Liabilites: If it increases it means you have "positive cash flow". The idea is that you should have paid it out but have not. For the 1st quarter, then: A/R => -52 Inventory => -319 Prepaids => -99 Liabilities => +1446 Sum of above = +976 The way the note is classified suggest that the production equipment will be paid in full rather than financed. This makes sense since DMX will avoid interest costs. The recent draw of $2.5M is surely going to be used to meet the liability arising from the equipment purchase commitment referred to in the Y/E F/S. PlayTheKing