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Entertainment Gaming Asia Inc. Message Board

  • pjv2xyw9dww4b5 pjv2xyw9dww4b5 Apr 1, 2006 3:15 PM Flag

    recent developments & balance sheet

    I wanted to see how beneficial the effects of the RECENT DEVELOPMENTS (near the beginning in http://www.sec.gov/Archives/edgar/data/1004673/000114420406012567/v039108_10ksb. htm ) might be to the company if I pulled them forward to 12/31/05 under assumptions fairly favorable to VNX. I put $7 million in debt on the balance sheet, had Bricoleur spend $5M to buy stock at $3.50/share, placed 2.5M shares at $2.50/share, paid $6.18M to repay $6M of convertible debt (text search 103% in http://www.sec.gov/Archives/edgar/data/1004673/000101968705000712/exh_10-2.htm and http://www.sec.gov/Archives/edgar/data/1004673/000101968705000426/ex10-2.htm ), and converted $5,654,500 to stock at $1.65/share. Starting with 17,741,451 shares outstanding at 12/31/05 (page F-5 in http://www.sec.gov/Archives/edgar/data/1004673/000114420406012567/v039108_10ksb. htm ), adding 3,426,970 sh. for debt conversion, 1,428,571 sh. for the sale to Bricoleur at $3.50/share, and 2,400,000 sh. for the $6M placement, I get at least 24,996,992 sh. outstanding.

    31-Dec-05 (adjusted for Bricoleur debt, Bricoleur equity sales, convertible debt conversion and repayment, $6M private placement)
    Cash and cash equivalents 8,705,243
    Current portion of A/R, trade, net of allowance for uncollectables 1,550,559
    Due from affiliate 4,098
    Inventories 3,045,334
    Prepaid expenses 113,557
    Current assets 13,418,791

    Equipment rented to customers, net of accumulated depreciation 146,527
    Property and equipment, net of accumulated depreciation 585,431
    Intangible assets, at cost, net of accumulated amortization 1,862,268
    Due from affiliate
    A/R, trade, net of current portion, less unamortized discount 600,430
    Deferred expenses 748,171
    Deposits 759,653
    Total assets 18,121,271

    Current portion of leases payable 471,269
    A/P 1,836,234
    Accrued expenses 794,203
    Deferred revenues, current portion 52,248
    Customer deposits 81,858
    Current liabilities 3,235,812

    Deferred revenues, net of current portion 161,335
    Notes payable, net of current portion 7,000,000
    Leases payable, net of current portion 421,975
    Total liabilities 10,819,122

    Common stock, $.001 par value, 25,000,000 sh. authorized 25,398


    Treasury stock at cost (846,820)
    Deferred expenses (3,419,088)
    Additional paid in capital 83,410,436


    Deficit (71,867,777)
    Total stockholders' equity 7,302,149
    Total liabilities and stockholders' equity 18,121,271

    At $2.80/share, the market cap is about $70 million, or less than 10 times stockholders' equity. It's better, but I'll hang in there short until hearing how 2006 Q1 went, and probably longer....

    I still need to deal with the warrants issued to the providers of the $5M credit line to be paid off.

    This is all pj's wild opinion and conjecture, short-sighted and backwards-looking.

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    • I'm surry for not following all of the links that you just posted in detail

      but did you include the 2006Q1 purchase price + shares for the Dolphin deal? I assume that the deal was postponed until this quarter because VNX did not have 750K in free cash until the private placement financing deal with went through.

      " ... in exchange for $750,000 cash and 1,000,000 shares of VendingData(TM) common stock. On February 27, 2006, VendingData(TM) entered into a licensing and manufacturing agreement with Dolphin Products Pty Limited, of Melbourne, Australia. Pursuant to the agreement, Dolphin has received the exclusive rights to manufacture VendingData(TM)'s RFID chip product. The agreement has a term of 10 years."



      Question: Will the 1M shares that go to Dolphin and the 2.4M share to the finance company be dilutive for existing VNX common share holders?

      • 1 Reply to kidecar
      • No, but I'll squeeze it in there. I have an Excel workbook into which I've copied many of their financial statements from SEC filings over the years. At this moment I'm tinkering with the statement of changes in stockholders' equity. I'm looking at the effect of hypothetical forced exercise of all outstanding options (whether actually exercisable now or not) and warrants that I can track down in order to give VNX as strong a balance sheet as I can conjure. These adjustments I'm backing up to 12/31/05, and no consideration of Q1 2006 operating results is being attempted. In short, I'm probing the upper limit of the potential strength of the balance sheet, using assumptions favorable to the company when in doubt.

 
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