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MELA Sciences, Inc. Message Board

  • exgasmaster exgasmaster Mar 18, 2013 8:54 AM Flag

    Looks like the loan closed - see today's 8K

    One of the few stocks I see that is up this morning in pre-market.

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    • fi_s@rocketmail.com fi_s Mar 19, 2013 1:11 PM Flag

      I know nothing about nothing, but about this loan, is this good or bad for MELA?

      Here's what i see:

      - Interest of $630k in the first year.
      - Fee of $100k in first year
      - Another fee of $425k at end of loan, so amortized I'll call that $100k this year.
      - Issuance of about 650,000 warrants to lender. I can't find an expiration date anywhere (help), but if they run the life of the loan, I price the value at about $0.30 per warrant. That's about another $200k, or amortized, $70k this year.

      By my calculations, that's about $900,000 this year. [ Of course it doesn't all get paid out this year. A bulk does ($730k), but if it was me, I'd charge myself the extra $170k this year knowing that it is accruing. ]

      But anyways, call it roughly $1 million in charges to get a loan of $6 million which is only covering operating expenses for one quarter.

      So is MELA going to generate $1 million in extra revenue in a single quarter this year? Are they even going to generate an extra $1 million in revenue over the entire 2013 year? Extrapolating from 4th quarter of 2012, they'd have to double their revenues just to cover the charges associated with the loan.

      If they don't, then it seems to me that the loan sets MELA further behind, instead of getting them ahead.

      Thoughts?

      PS - Not trying to sway anyone. These are just my opinions. I personally like the idea of the product, I'm just kicking the tires to see if the finances make sense to me.

 
MELA
2.48-0.33(-11.74%)Jul 22 3:59 PMEDT

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