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Technology Stocks : Data Race (NASDAQ: RACE) NEWS! 2 voice/data/fax: ONE LINE! -- Ignore unavailable to you. Want to Upgrade?

To: Niels Larsen who wrote (29893)	11/8/1998 11:17:00 AM
From: drakes353	Read Replies (1) \| Respond to of 33268

Niels: I could find out, but would rather ask you, if you already know and are sure: what is the net asset value that they must have, and what do they have? They need $4 million in net tangible assets (aka shareholder's equity.) Take where they where as of June 30th ($2.5 mil) add the money from the convert deal ($2.1 mil) and subtract how much cash you think they have burned since June 30th ($2.4 mil, my guess) gives you my guesstimate of current NTA of $2.2 million. So for RACE to get back into compliance they need $1.8 million. That will get them back into compliance for one day, to stay in compliance longer than that they will need more moohla. can they make up for it with money advanced on a sale? I'm no accountant but I think they would have to book both deferred revenue and expense not just a credit to the cash account on the balance sheet. If the net worked out to $1.8 million I guess it might work. Gotta ask yourself how big a sale RACE would have to book to net $1.8 mil though...$3.6? $6.6? Not gonna happen. Expect them to do another lay-up convert deal of some kind. drakes353