From AFFY's 1stQ 2013, AFFY had just $5.064M Net cash calculated as follows:
Cash and cash equivalents, plus Short-term investments, plus Long-term investments = $55.049M
Less: Total fixed contractual obligations of $49.985M
= $5.064M net cash available for operations
Now since then, AFFY has paid (1) $5.975M to Lonza and Nektar and (2) $5M to Bachem Americas for cancellation of manufacture of O's active pharmaceutical ingredient for a total of $10.975M.
AFFY's 10Q disclosed that it had $32.35M in manufacturing obligation to be paid in 2013. Assuming, for arguments sake only, that the $10.975M in payments satisfied THE ENTIRE $32.35M of AFFY's outstanding manufacturing obligations, then the payments to Lonza, Nektar and Bachem could be expected to improve AFFY's disclosed "free cash" by $21.375M. Adding that figure to the $5.06M previously calculated net cash, means that AFFY, at best, would have $26.435M of net cash available for operations as of the 3/31/13 financial disclosures.
With no revenues and $26.435M net cash, AFFY must
- Fund ongoing operations.
- Pay termination compensation to its officers.
- Pay restructuring costs for termination of the remaining 25% of its workforce.
- Pay Healthstar Clinical Education Solutions, LLC for breach of contract claim Case No. 1-13-CV-245581
Superior Ct Santa Clara Cty, CA).
- Pay for the defense/liability of the shareholder derivative action to the extent not covered by insurance, if any, In re Affymax, Inc., Shareholder Derivative Litigation, Case No. 1-13-CV-243259, Consolidated with Markland v. Orwin, et al., Case No. 1-13-CV-243962 (Superior Ct Santa Clara Cty, CA)
- Pay for the defense/liability of securities class action to the extent not covered by insurance in Bartelt v. Affymax, et al., Case No. 13-cv-01025-JPH (ND CA).
-Pay for defense/liability of products liabilities claims in connection with O.
- Pay for indemnification of its officers' litigation expenses and liabilities not covered by insurance.
What amazes me is how longs here will label you a "basher" and make all sorts of ad hominem attacks on you, when all you are doing is presenting factual information that can be verified through the company's own SEC filings (unlike Maxdad who provides mostly speculation and, in his words, "filling in the blanks" (or "making things up" as I call it)). You have presented a very rational case as to why it does not look very good for AFFY to last long enough for O to make it back to market (if it ever does, which I have my doubts that it ever will).
One of two things about the longs here shred. I believe most of the so-called longs really have no position in AFFY, but are paid pumpers employed by those hedge/mutual funds who are trying to unload their shares on credulous retail. Some may actually be retail longs who smoked Maxdad weed and now are in the grips of a delusional belief that AFFY is going to be at least a 10-bagger. Their crude, homophobic and disgusting ad hominem attacks on any who interfere with their agenda/belief system belie both their desperation and utter lack of sophistication.