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Gold/Mining/Energy : PYNG Technologies -- Ignore unavailable to you. Want to Upgrade?

To: Jack Rayfield who wrote (7434)	7/24/2005 5:09:16 AM
From: naturalperson	Read Replies (3) \| Respond to of 8117

I would think that PYNG's goal here would be to limit profits at this point in order to limit taxes. How much deferred R&D does PYNG still have to write-off? If you notice on the Expenses of the Financials an Amortization of Deferred R&D and an Amortization of - other. PYNG still has over $2,000,000 of Amortized R&D meaning it will bring this in as an expense in the future and this amount varies depending on the revenue and thus it is used to to increase the operations Expenses and thus lower the Profit to actually show a loss or another way is to say it increases the loss for the period, and all of this is fine because what it means is that the revenue generated by PYNG stays with the company and increases the cash flow of the company instead of going to the government. The number that all of us should be looking at and comparing is the EBITDA number, earnings before Interest, Taxes, Depreciation and Amortization. This is the number that all companies look at for mergers and acquisitions because this is the number that truly tells how profitable the company is, most companies are valued at about 5.5 times their EBITDA and anything above that is goodwill, thus it takes a sophisticated accounting mind to back out all the interest, depreciation and amortization off the financial statements and to recalculate the earnings. So I will not be surprised in the least if PYNG shows a loss going forward for at least another two years. Now, I am not an expert at this so if someone can enlighten me please do.

To: Jack Rayfield who wrote (7434)	7/24/2005 9:17:53 PM
From: kimball93	Read Replies (1) \| Respond to of 8117

jack earnings I think where we differ is in that I am assuming margins will be much better than their 65% from last quarter. Their PR where they announced 137k on the bottom line for april said as much. "This superior profit can be attributed to a major increase in gross margins generated from internal production and engineering enhancements in concert with increased unit sales and price increase." I am figuring the gross has probably grown to somewhere near 80% which would allow expenses of 425k to make those theoretical numbers. I guess we will see but I am putting alot of stock in the numbers they announced for april. Obviously I really really hope your numbers are wrong.