As I watch a triple header of football, I might as well look at the Zenith cash as I did RVX earlier. Firstly, I will review the Newsoara License deal as it impacts the financial statements. 

The Newsoara License agreement calls for US$15mm in near-term payments. The first $1mm was nonrefundable and received before July 31 so is already included in the cash. The second was $2.5mm to be received within 90 days of the agreement or Nov. 4th. The combined $3.5mm was to be net of tax so it appears to have netted $2.940mm. Since the first $1mm was received by July 1, the rest shows as $1.940mm in Accounts Receivable(asset) and the whole $2.940mm as Unearned License Revenue (liability). ZEN has received this $1.940mm payment since July 31. The next $5mm will be received at the completion of the phase 2 Castrate-Resistant Prostate trial subject to Newsoara's satisfaction with the results and decision to continue development. The final $6.5mm is for completion of a phase 3 trial or clinical study resulting in an accelerated approval from the FDA.

On Nov. 20/18, ZEN and Pfizer announced a collaboration trial for TNBC of which Pfizer would fund about half or $2.9mm. $2.1mm was received by ZEN by April 30/19 with $0.3mm of it earned by then. $0.3mm went to cash and $$1.783mm as Unearned Deposit(liability). $232,000 was earned in Q1/20 so a liability of $1.551mm was listed at July 31 as the deposit is already in cash. More will be earned each quarter and the liability reduced as the trial progresses but it is a non-cash item right now.

There is an $858,000 gain on Change in Fair Value of Financing Rights on the books that is non-cash so doesn't matter. It is for Anti-Dilution Rights from recent PP's and only comes into play if a future financing is done under $2.00 to compensate the recent participants.

We wondered how Zen was staying in business while broke before the license deal. A relative of DM lent ZEN $500,000, DM lent $300,000 and a director lent $100,000 in interest bearing loans in Q1/20. DM and the relative have been repaid since July 31.

On July 31 there was US$1.440mm cash. There were payables of $3.958mm. $2.1mm plus $0.3mm gross was raised in two PP's with the company netting $1.950mm after July 31. Zen owed RVX $1.088mm at July 31. Expenses were $2.548mm which would make the burn about $850,000/month. ZEN stated it at about $700,000 but as we have discussed in the past, they don't quite include eveything.

$  1.440mm   cash at July 31

    1.950mm   net from financings

    1.940mm   from Newsoara

   (1.700mm)  2 months of burn to Sept. 30

   (0.800mm) to pay back DM and relative

____________

$   2.830mm Cash 

Owe $1.088mm to RVX - Lab, offices and maybe personnel.

Probably have about $4mm in payables.

Hopefully, we soon get positive results from the Prostate Cancer trial and Newsoara likes the results and decides to continue so sends us that next $5mm. Sometime, there might be another $0.800mm from Pfizer for the TNBC trial but I have no idea when that might be.

If I have missed anything, let me know.