You ask what my point is when I would think that any person could see what my point is.
My point is that they look like they are driving down the road to broke city with the gas pedal pushed to the floor board.
Of course you do not have to really worry about the NLST bus actually arriving in broke city because it is surely going to make a detour to dilution town before it gets to broke city. It looks to me like the bus will be making that detour before year end as wel,l and it also looks to me like the dilution is going to be substantial at that.
But then what do I know, and you should just keep living in lala land.
Thought so after the 10K came out and the first quarter numbers point to the need for more capital.
Ended first quarter with $21.2 million cash, but working capital of only $14.2 million. Working capital is much less than their cash because they had a lot of unpaid accounts in relation to small account receivables of about $900k. Against this small account receivables they had accounts payable of $4.8 million and a lot of other accrued but unpaid expenses. This caused their working capital to be $7 million less than their cash.
Now consider the loan to be repaid to the fortress unit. If I am thinking correctly they have to repay in full by July of next year with a final balloon payment coming in that month of July next year with the total to be repaid somewhere over $9 million. square up the company's collectables and payables and you have their reported working capital of $14.2 million. Subtract over $9 million that has to be repaid to the fortress unit through July next year and you have about $5 million left.
Now consider that the first quarter loss alone was $6.5 million with them reporting that only $0.5 million was stock based compensation. So maybe they now run somewhere between 5 or 6 million cash expenses per quarter??
Perhaps you mistakenly read the 10Q for another company?
I had been looking at the stock because of the incredible decline from the IPO price to see if it offers any value at these levels. The 10Q makes it very clear that it does not.
As far as I can see the most plausible outcome here is that they just BK the company latter this year
Perhaps your purchase might work for a very quick trade, but might it not be wiser to wait until after the substantial dilution that is essentially guaranteed to be coming in the third quarter or early part of the fourth quarter?
For that matter why not wait for the additional dilution that should be coming in the first few months of next year.
If you look at the 9 month numbers in the third quarter report and then look at the full year number that's what it works out to. Just $662,000 in total product sales in the fourth quarter.
Although they sell other things besides the M100 smartglasses, even if you assume they get two thirds of their product revenues from these glasses, that is still only a paltry $400k in M100 revenues in the fourth quarter. With the M100 selling for $1k a pair that comes to a grand total of 400 pair of M100 smartglasses in the fourth quarter and they were selling the glasses in both the US and Chinese markets in the quarter.
So in the fourth quarter they only managed to sell some 400 pair of M100 smartglasses throughout the two largest economies on earth combined.
Pumpers lie, but numbers tell the truth
Perhaps the next trial in a few weeks will have the same result, or maybe not. Who know?
Should make for an entertaining message board if nothing else.
BEFORE anyone even replies that they will be broke before then, don't bother with such nonsense.
A quick look at their financials shows that they at the end of the third quarter they had $14.1 million in unrestricted cash and another $1.1 million in restricted cash. Against that cash position they had only a small current debt of $1.5 million and long term debt of just $4.1 million.
Since then they have also raised another $10.4 million in a stock offering. With current debt of only $1.5 million there is no doubt whatever about their being around for the trial next month.
So it just starts over again with the patent infringement trial next month. Anyone know the exact day it is scheduled to start?
Now that the trial is coming near the end, I think I will bump this up to the top so that no one forgets what is really at stake in this trial.
Blind eye thinks that bankruptcy by diablo will put an end to UltraDimm . What an idiot. Bankruptcy by diablo will simply get diablo new financing and new owners. Perhaps SNDK might even be the new owners
Then the new owners/SNDK will have to share UltraDimm with NLST.
They also estimated SNDK would earn about $700 million in 2016 from ULtraDimm sales, or about $3 per share.
If you want to read about it yourself then just google search sandisk has "game changing product"
Article is from march last year so a little dated, but it gives you an idea of the amounts of money that are actually involved here, especially if you project this kind of revenue and profits out over a perhaps 10 year useful lifetime of product sales
Kind of ignorant for people to be posting on this MB about how much money diablo has. Who cares how much money diablo has.